CALGARY, Canada -- Oilexco North Sea has signed a Share Purchase agreement for Svenska Petroleum Exploration UK (Svenska) for $25 million in cash. The purchase will give Oilexco the following interests:
• A 1.66% unitized equity interest in the Nelson field and platform
• A 6.45% working interest in the Janice and James fields and floating production vessel
• A 40% working interest in Block 30/23b, south east of Janice.
Svenska's share of production from the Nelson and Janice/James fields was approximately 750 b/d in 2007, and consisted almost entirely of oil. Production at the Janice/James fields has been suspended since late in 2007, but is expected to resume production in 2Q 2008.
"The Svenska purchase represents another important step for Oilexco's continued expansion in the UK North Sea," says Arthur Millholland, Oilexco president and CEO. "While our primary mechanism for growth has been by the drill bit, we have always stated that we will make acquisitions that are specifically accretive to our objectives, and Svenska is an example of this."