EnQuest PLC (LON:ENQ) has announced a sale and purchase agreement with Equinor for a 40.81% equity interest in the UK offshore Bressay oil field.
The oil and gas producer will pay £2.2mln payable as a carry against 50% of Equinor's net share of costs of the northern North Sea field, as well as a contingent payment of US$15mln when the authorities approve the development of the project.
Under the terms of the deal, EnQuest becomes operator of the licences following the plugging and abandonment of the 3/28-1 well by Equinor.
Bressay holds estimated oil resources of 600-1,050mln barrels, while EnQuest sees potential to add another 115mln barrels at a low cost.
EnQuest shares advanced 3% to 13.52p on Friday morning.