Oilexco Enters LOI with Bluewater to Deploy FPSO at North Sea's Huntington

Oilexco, the Operator of the Huntington field in the UK, where Noreco owns a 20% share, has entered into a letter of intent with Bluewater for deployment of the Floating Production, Storage and Offloading vessel (FPSO) Glas Dowr at the Huntington field in the North Sea.

"This brings the Huntington field closer to development, and we will now finalize a field development plan for the first phase of development," said Scott Kerr, CEO.

The deployment of the Glas Dowr FPSO is subject to a final agreement between the parties.

Further details on the development plan for the Huntington field will be subject to a separate announcement later this year.

Noreco became a 20% owner of license P1114 in UK through the acquisition of Altinex ASA last year. The other owners of the license are Oilexco North Sea Limited (40%, operator) E.ON Ruhrgas UK Exploration and Production Limited (25%), and Carrizo Oil and Gas, Inc (15%). The license is located in the central part of the UK North Sea, close to existing fields and established infrastructure. The license contains the Huntington discovery, where two significant discoveries in reservoir of Paleocene (Forties formation) and Jurassic (Fulmar formation) age were made in June 2007. There is also a previous oil discovery in Triassic reservoirs in the license.