Tullow Oil, the independent international oil and gas exploration and production company, has completed the acquisition, from Shell UK Ltd. and Esso Exploration and Production UK Ltd., of their entire producing interests in the Schooner and Ketch gas fields and associated acreage. Tullow has also now assumed operatorship of both fields. This transaction was first announced on Dec. 20, 2004.
The total consideration for the transaction is £200 million, inclusive of capital allowances, which has been financed through a combination of bank debt and internal resources. The revenues and activities of Schooner and Ketch will be recognized in Tullow's accounts with effect from April 1.
The producing interest acquired comprises of 90.35% interest in the Schooner field and a 100% interest in the Ketch field. The fields have been in production since 1996 and 1999 respectively, with gas transported to the Theddlethorpe terminal via the Caister-Murdoch System (CMS) infrastructure in which Tullow has a 17% interest. In addition to the producing assets, Tullow has also acquired minority interests in the Topaz, Marjan, and 44/27-1 discoveries.
An update outlining Tullow's anticipated work program for these assets will be provided as part of the group's annual results presentation on April 12.