EnQuest snaps up North Sea assets from Centrica, increases reserves

22nd Oct 2013 07:47

North Sea-focused oil and gas firm EnQuest is set to increase its reserves by 4.7m barrels of oil equivalents (mmboe) through the acquisition of a series of assets from Centrica.The firm is paying Centrica an initial consideration of $39.9m and assuming net debt of $5.1m for its entire 50% share in the Greater Kittiwake Area (GKA) assets in the UK Continental Shelf, along with a 100% interest in the Kittiwake to Forties oil export pipeline.EnQuest will also pay a deferred $30m, subject to the regulatory approval of a field development plan for nearby projects - the Scolty field and/or the Crathes field - which includes a tie-back to Kittiwake."I am delighted to announce our acquisition of these Greater Kittiwake Area assets, giving us an additional UK hub and adding 4.7 MMboe to our reserves. This acquisition fits within our goals of managing mature fields, and of exploiting nearby discoveries and near field exploration opportunities," said EnQuest Chief Executive Amjad Bseisu."Our Scolty and Crathes discoveries are within the area and would benefit from a tie-back to Kittiwake. These opportunities would also allow for the extension of the GKA field life."The stock was up 0.77% at 130.8p in early trading on Tuesday.BC