Endeavour set to strengthen UK North Sea production

Endeavour Energy UK has agreed to acquire ConocoPhillips' interests in three producing fields in the UK central North Sea for $330 million

Offshore staff

HOUSTON -- Endeavour Energy UK has agreed to acquire ConocoPhillips' interests in three producing fields in the UK central North Sea for $330 million.

The transaction will give Endeavour operatorship and 40% of the MacCulloch field in block 15/24b, subject to government and partner approval; an 18% interest in the Premier-operated Nicol field in block 15/25a; and an increased stake (25.68%) in the Chevron-operated Alba field in block 16/26a.

Combined net production from these assets is currently around 10,000 boe/d, with associated proved and probable reserves of over 33 MMboe.

“We believe these fields have valuable upside potential," said William L. Transier, Endeavour’s chairman, CEO, and president.

“The production…is almost 100% oil, which will generate a large increase in cash flow to Endeavour and provides a mechanism to accelerate the recognition of our current UK tax benefits of almost $300 million after this acquisition…

“Upon completion of this transaction and after the start-up of Bacchus and the Greater Rochelle development projects, Endeavour will become one of the largest independent producers in the UK North Sea."

The various programs should lift the company’s North Sea output from 4,500 boe/d at present to over 20,000 boe/d.

12/27/2011

More in Regional Reports