UK: Enquest Finalizes Kraken Acquisition from Canamens

EnQuest PLC (‘EnQuest’) today announces that it has completed the acquisition of two companies from Canamens Limited, whose assets include the 20% interest in the Kraken offshore oil discovery.

This agreement was announced on 9 January 2012 under which EnQuest would pay an initial consideration of US$45 million dollars in cash and a further US$45 million in cash, contingent upon approval of the Kraken Field Development Plan (‘FDP’) by the Department of Energy and Climate Change (‘DECC’).

Through this transaction, EnQuest will acquire a 20% interest in blocks 9/2b and 9/2c, including the Kraken discovery. The operator of Kraken is Nautical Petroleum plc (‘Nautical’) which estimates gross contingent resources of 160 MMboe for block 9/2b and 9/2c. EnQuest also acquires further potential exploration upside in blocks 3/22a and 3/26 (40% EnQuest interest) and in blocks 9/6a and 9/7b (35% EnQuest interest).

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Offshore Energy Today Staff, February 1, 2012; Image: Canamens