Cairn’s Subsidiary Acquires Stake in PL497 (Norway)
Bridge Energy ASA, the Oslo Axess-listed oil and gas exploration and production company, has executed an agreement with Agora Oil & Gas AS which is 100% owned by Cairn Energy PLC (“Cairn”), for the farm-down of a 15% working interest in production licences PL497 and PL497B on the Norwegian Continental Shelf.
After the transaction Bridge Energy will hold a 15% working interest in the two licences. Cairn, through its subsidiary Agora, will as a consideration for the transaction carry a substantial share of Bridge Energy’s well cost. The main prospect in the licences, Geite, is scheduled for drilling in Q3 2012.
Alfred Kjemperud, Managing Director of Bridge Energy Norge, commented:
“We are pleased that Cairn, through Agora, has joined us in the PL497 licence which demonstrates support for the technical potential of the acreage. Through this farm-out, Bridge is able to re-allocate its exploration capital over a wider number of prospects in support of one of our key corporate objectives. The 15% interest in Geite which Bridge retains, represents a substantial target and gives upside potential which could have a material value impact in the event of a discovery.”
Press Release, June 27, 2012