United Kingdom – Tuesday, January 5, 2016:
Azinor Catalyst (“Catalyst”), the Seacrest Capital Group-backed E&P company focused on the United Kingdom Continental Shelf (“UKCS”), is pleased to announce that it has signed an agreement to acquire a 100% working interest in UKCS Licence P.1989 (“the Licence”), containing Blocks 14/11, 14/12 & 14/16, from Norwegian Energy Company UK Limited (“Noreco”) and Noreco and Trap Oil Limited (“Trap”).
Under the terms of the agreement Catalyst will purchase the entire working interest in P.1989 from Noreco (50% working interest) and Trap (50% working interest). Catalyst will undertake to complete the outstanding Firm Work Programme obligations on the licence. Catalyst has already met these obligations through the purchase of new 3D Geostreamer seismic data over the Licence.
In addition, Catalyst has committed to making certain contingent milestone payments to Noreco and Trap, with drilling activity on the Licence entirely at Catalyst’s discretion. Completion of the transaction is subject to Secretary of State and DECC approval.
Henry Morris, Technical Director of Azinor Catalyst, commented:
“This licence is an excellent addition to the Catalyst portfolio. We have two large oil prospects, Homer (mid case recoverable resources 150 MMboe) and Washington (mid case resources 80 MMboe) up dip from the Athena field. We are one of a few companies to have looked at the new seismic and definitely the first to have pushed it hard technically. Historically this area has only been covered by 2D seismic and now we have new good quality broadband seismic data. What’s even more exciting is our internal QI (quantitative interpretation) work indicates the presence of oil at Homer with the new the seismic data – see figure below.
This is a classic example of where investing upfront in data and technology to explore on the margins of the basin is opening up new potential.”
Nick Terrell, Managing Director of Azinor Catalyst, commented:
“We are extremely pleased to have secured operatorship and 100% working interest in the P.1989 Licence. We have achieved this entry through an innovative structure with low upfront costs and staged payments which share the risk and potential upside in the Licence among the current working interest holders. Going forward, and given our high working interest position on the Licence, we will be looking for partners to join us in the drilling of a potential exploration well.
This deal further increased our acreage position in the UKCS and continues our strategy of advancing and unlocking the potential of UK plays and prospects through new data and new technology.”