Oyster Petroleum Confirms West of Shetland Farm-In Deal
- Business & Finance
Oyster Petroleum Ltd, a new exploration and production company focused on the UKCS, has confirmed the acquisition of a package of licence interests located in the West of Shetlands basin from Ithaca Energy (UK) Limited (‘Ithaca’).
The transaction will see Oyster acquire a 9% interest in UK licences P.1631 and P.1832, covering blocks 204/14c, 204/18b and 204/19c, where an exploration well on the Handcross prospect targeting 150 mm bbl reserves is due to be drilled at the end of the year. Under the terms of the deal, which is subject to regulatory approvals and DECC consent, Oyster will also acquire Ithaca’s 33% interest in West of Shetlands licence P.2018, covering blocks 214/24b, 214, 29a and 214/30c and including the Ainslie prospect. The licence is operated by RWE Dea UK SNS Limited.
Commenting on the transaction, Richard Morgan, Chief Executive Officer of Oyster Petroleum Ltd said:
“We are very pleased to be acquiring interests in two exciting projects on the UKCS so soon after forming Oyster Petroleum. The Handcross prospect offers material potential close to existing infrastructure as well as a near-term drilling opportunity. We are delighted to be working with Ithaca during the planning phase for the well. Ainslie offers attractive prospectivity within an emerging area in the West of Shetlands and we look forward to advancing the project with RWE and Premier.”
“This first acquisition for Oyster closely follows our strategy of targeting new plays and sizeable exploration prospects on the UK Continental Shelf.”
Formed in summer 2013, Oyster Petroleum is a new player on the UKCS. The company is financially backed and fully funded by HitecVision, a leading international investor specialising in buyouts and growth stage investments in the oil and gas industry. HitecVision has committed funds of USD150 million to Oyster from its HitecVision VI L.P. fund. Since 2003, HitecVision has invested in a number of highly successful start-ups in the North Sea, including Revus Energy, Noreco, and Spring Energy, which was sold to Tullow Oil in 2012. HitecVision’s current E&P company portfolio of companies includes Core Energy and Spike Exploration. Oyster’s management team, who have worked together for over ten years, comprises Richard Morgan, CEO, Nigel Platt and Dave Went. The team have extensive experience and a proven track
record of building exploration portfolios in the North Sea including portfolios at VertitasDGC Ltd, Sussex Energy Ltd and more recently Valiant Petroleum plc.
Press Release, September 23, 2013