Bayerngas to Acquire Interest in North Sea Developments
Bayerngas UK (BGUK), a wholly-owned subsidiary of Bayerngas Norge AS, has entered into separate agreements relating to two important gas developments, both located in the UK Southern North Sea. The agreements are subject to regulatory and partner approval.
Under the first agreement, Bayerngas North Sea, a BGUK subsidiary, will acquire a 25% interest in the Clipper South project from Fairfield Energy. Fairfield retains a 25% interest and RWE Dea remains as Operator with a 50% interest. Clipper South is a tight gas development for which a Field Development Plan (FDP) was recently submitted. BGUK believes first gas could be produced in 2012.
Under the second agreement, Bayerngas E & P Ltd, also a subsidiary of BGUK, will acquire Endeavour Energy's 12.5% interest in the Cygnus project where the partners are GDF Suez (38.75%, Operator) and Venture North Sea (48.75%). The Cygnus partners are currently evaluating if the two recent, positive, appraisal wells impact the original FDP which was submitted in 2009. BGUK believes first gas could be produced in 2013.
Speaking for BGUK, Gerry Harrison (Managing Director) said, "These two transactions are significant to the Bayerngas Norge Group and important to our ultimate shareholders. In combination, we believe the two projects will represent peak production of around 0.5 billion cubic meters of gas per annum, net to BGUK, or the equivalent of over 8,000 barrels of oil per day. This fits at the lower end of our strategic ambition in the UK, but nevertheless it is an excellent foundation on which to build additional growth through exploration and development projects. We look forward to working with both license groups."