EnQuest acquires 50% of the Greater Kittiwake Area

Posted: 22nd October 2013 09:17

EnQuest PLC ('EnQuest'), is pleased to announce an agreement to acquire the UKCS Greater Kittiwake area ('GKA') assets currently owned by Centrica North Sea Oil Limited ('Centrica'), as well as Centrica's 100% interest in the Kittiwake to Forties oil export pipeline.  The agreements are subject to the normal regulatory and third party consents.
EnQuest will pay a base consideration of US $39.9 million and will additionally assume net debt of US $5.1 million, which is subject to certain working capital and other adjustments.  Additionally EnQuest will pay a deferred consideration of US $30 million, contingent on regulatory approval of a field development plan ('FDP') for the Scolty field and/or the Crathes field which includes a tie-back to the Kittiwake platform.  Further contingent consideration may be payable, subject to future exploration success. 
EnQuest CEO Amjad Bseisu said:
"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. 

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 transaction also provides infill drilling opportunities in the Greater Kittiwake Area fields and improves the potential from exploration opportunities, both in the GKA area and in our existing acreage nearby."
Main details of assets being acquired:
Further consideration details:
The aggregate maximum consideration for all the assets being acquired:  
  Background note on Scolty/Crathes

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