Enegi takes option on Advanced Buoy

Offshore staff

LONDON -- Enegi Oil has secured a four-month option to acquire the entire share capital of Advanced Buoy Technology (ABT), based in Aberdeen.

ABT is privately owned with an arrangement allowing it to take on exclusive global rights to buoy technologies developed by Ocean Energy and Resource, and suited for marginal oil and gas fields.

Enegi points out that the UK continental shelf alone has 70 potential field development opportunities with total recoverable reserves of 3.3 Bboe. Half these fields are 20MMboe or less.

Additionally, there are more than 160 projects that could recover 2.6 Bboe via incremental development in and around existing fields. Three-quarters of these developments are in the range 1-10 Mbbl.

Some could feasibly be developed at lower cost, Enegi says, using an unmanned buoy sitting just below the sea surface and housing production and processing equipment.

ABT can provide solutions as a result of its strategic partnership with Wood Group. It also has an option to acquire a buoy for £750,000 ($1.2 million) currently undergoing fabrication in Dundee, eastern Scotland, which would likely be employed on the first project.

Although owned by Energi CE Alan Minty, ABT has been developed independently because Enegi has been unable to commit to the required investment. Enegi intends to undertake technical, commercial, legal, and financial due diligence for four months before deciding whether to recommend a buyout to its shareholders.

To meet the working capital needs of this program, the company has arranged a three-year equity facility of up to £7.5 million ($12 million) with Dutchess Opportunity Cayman Fund. The ELF arrangement is by First Columbus LLP, Dutchess’ joint venture partner in the UK.

05/23/2011