RockRose to Buy North Sea Cotton Gas Field
RockRose Energy Plc announced Tuesday that it has signed an agreement to acquire 100 percent of the equity of Speedwell Energy (1) Limited, which holds a 100 percent interest in the Cotton gas field in the UK sector of the Southern North Sea. The transaction is subject to the usual regulatory approvals.
Cotton was discovered in 2009 by well 43/21b-5Z, which encountered a gas column of up to 1,260 feet over six gas bearing sandstone units. Speedwell estimates Cotton contains recoverable gas resources of 97 billion cubic feet and has the potential to produce at a peak rate of up to 12,000 barrels of oil equivalent per day.
A draft field development plan has been prepared by Speedwell for submission to the UK Oil and Gas Authority. RockRose said prior to taking FID, it will carry out further studies to ensure that both the subsurface delivery and the project economics are “robust”.
“This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the Southern North Sea Gas Basin in which we already have other producing assets,” Andrew Austin, RockRose executive chairman, said in a company statement.
“We look forward to carrying out further evaluation of the discovery prior to committing to FID,” he added.
Richard T. Strachan, CEO of Speedwell Energy Limited, said, “having identified the potential in Cotton some three years ago, which was a relinquished asset going nowhere, to one now where we have a draft field development plan and a delivery team in place capable of bringing Cotton through to first gas, we are delighted that RockRose will now take over Cotton and are looking at how to potentially take it forward and we wish them all the best as they do so”.
RockRose describes itself as an independent oil and gas production and infrastructure company. Listed on the main board of the London Stock Exchange, the business focuses on onshore and offshore production opportunities and infrastructure projects.
In its year end trading update last month, RockRose announced that it had delivered on key financial and operational targets over the course of 2019 and said it is well placed to continue to make further progress in 2020.
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