Iona agrees terms for stake in Huntington in North Sea

Iona Energy has agreed to purchase the entire share capital of Carrizo UK Huntington, assets of which include a 15% interest in the Huntington field development in the UK central North Sea.

Offshore staff

CALGARY, Canada – Iona Energy has agreed to purchase the entire share capital of Carrizo UK Huntington, assets of which include a 15% interest in the Huntington field development in the UK central North Sea.

Additionally, Iona will receive a 100% interest in a yet-to-be ratifiedUK 27th license round award covering block 22/14d, pending approval from the UK government. This includes an extension, mapped on 3D seismic, of the Jurassic discovery that underlies Huntington.

Iona will pay parent company Carrizo Oil & Gas a $6-million non-refundable deposit on signing the sale and purchase agreement, along with a cash consideration of $152 million on closing, and a deferred payment of $18 million from first producing field revenues.

Huntington’s Paleocene reservoir oil is in block 22/14b. Operator E.ON Ruhrgas has developed the field with four production and two water-injection wells, to be tied back to Teekay’sFPSOVoyageur Spirit, which has been at the offshore location since early October. Final hook-up of risers, completion, and commissioning are under way, with first oil expected during the first half of this year.

Initial production is expected to be 30,000 b/d of 43° API oil and 27 MMcf/d (764,555 cm/d) of gas.

01/07/2013

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