EnQuest joins Kraken heavy oil partnership

Jan. 10, 2012
EnQuest has agreed to acquire two companies owned by Canamens, thereby gaining entry to the Kraken heavy oil field in the UK northern North Sea.

Offshore staff

LONDON – EnQuest has agreed to acquire two companies owned by Canamens, thereby gaining entry to the Kraken heavy oil field in the UK northern North Sea.

The farm-in involves an initial payment of $45 million, with a similar amount to be paid on approval of the Kraken development plan by the UK’s Department of Energy and Climate Change.

The transaction, EnQuest will acquire a 20% interest in blocks 9/2b and 9/2c, including the Kraken discovery.

Operator Nautical Petroleum estimates gross contingent resources for the blocks at 160 MMboe. EnQuest also has potential exploration upside in blocks 3/22a and 3/26 (a 40% interest) and in blocks 9/6a and 9/7b (35%).

01/10/2012