Manchester-based Enegi Oil, the oil exploration company, is considering a switch of focus towards the marginal oil and gas fields of the UK North Sea and a move away from Canada’s oil fields. It is also reviewing a possible acquisition as part of a shift in its business strategy.
The firm believes that a move into the UK’s marginal oil fields could provide a valuable means of differentiation in the oil and gas industry and will align with the political environment, which is moving towards the maximisation of marginal oil and gas fields. The new UKCS regulator is planning a new bill designed to improve the UK’s energy security and independence through fuller realisation of UK North Sea resources.
Alan Minty, Enegi Oil’s chairman, said in a stock-market statement this week that these UK hydrocarbon fields potentially offered a ‘huge opportunity’ for the company and its shareholders, hinting too that the company might consider selling off its Canadian oil field interests. The company has received a bid from an unnamed possible buyer which is now going through due diligence processes and complex contractual negotiations.
Enegi Oil has also said that it is reviewing the case for purchasing the remaining shares of ABT Oil & Gas Limited, the Aberdeen-based company which has developed technologies designed to enhance marginal oil fields successfully and profitably.
Mr Minty said that the company felt it was clear that their future was best pursued in the direction of high-value and low-risk marginal oil fields, and that the board was working to make Enegi’s strategic direction highly investable and easily communicable. He also said that the company’s board felt that the remainder of 2014 would be a hugely exciting one for the company, given its achievements to date and the intention to move into the marginal fields.
He also confirmed that Enegi would not be hitting the 31st August deadline to submit a Fyne Field development plan for the North Sea. Announcements on further projects which will maximise the benefit of moving into the marginal oil fields are expected in the next few months.
In the chairman’s statement, the company also said that the engineering solution for the Fyne Field self-installing float tower had advanced ‘considerably’. Significant work has progressed on the floating tower design, including structural, foundation and topsides design and engineering, installation and operation.
Enegi Oil Plc is an independent oil and gas business with operations in the UK, Ireland and Atlantic Canada. It listed on the AIM of the LSE in 2008. It operates six major gas and oil licences.
Debate around the value of marginal oil fields in the UK North Sea continues to rage in the run-up to the Scottish referendum, with experts unable to agree on the total economic value of oil and gas within UK waters of the North Sea. Despite differing estimates, the consensus is that further economic benefit will be able to be derived from these fields, thanks to improved technologies and new drilling processes which will improve accessibility and efficiency.Last updated on 02:38PM - 14/10/14