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The Markets
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The Markets
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Energy

EnQuest divests majority of Eagle discovery in return for ‘free carry’

It will retain a non-operated 15% interest in the North Sea asset.

EnQuest Plc (LON:ENQ) has inked a deal to divest the majority of the Eagle discovery, in the North Sea, for a nominal dollar.

The buyer, Anasuria Hibiscus UK Limited, is farming into the project – taking 85% of the project equity – and will fully carry all EnQuest’s costs through to ‘first oil’.

It comes as EnQuest focusses on current production and cashflow, boosted by a recent transaction that will add around 10,000 bopd of lower cost production.

READ: EnQuest buys stakes in North Sea fields for US$325mln

It is expected the transaction will close during the second quarter of 2021, after which EnQuest will retain a non-operated 15% interest in the project.

Eagle was confirmed as a discovery by a well in 2016, with the company encountering the oil-bearing Fulmar reservoir with 67 feet of vertical thickness.

EnQuest noted that it has no gross assets, reserves or profits attributable to Eagle.

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