Page 16 - EurOil Week 34

EurOil PROJECTS & COMPANIES EurOil

Shell closes farm-ins at North Sea gas finds

UK ROYAL Dutch Shell has closed a deal to farm “The focus will now be on progressing
into two UK North Sea gas discoveries after get- appraisal activity on the Resolution and Endeav-
Shell will cover 85% of ting clearance from authorities. our gas discoveries,” Egdon’s managing director
the cost of a 3D seismic Shell struck the deal in January with Lon- Mark Abbott said. “We looking to building on
survey. don-listed junior Egdon Resources to acquire our good working relationship with Shell and
70% operating stakes in licences P1929 and benefiting from their substantial worldwide
P204. The licences contain the Resolution and operational experience and expertise.”
smaller Endeavour gas fields respectively. The A competent person’s report from Schlum-
Oil and Gas Authority (OGA) has now approved berger last year put the discoveries’ mean con-
the transaction. tingent resources at 231bn cubic feet (6.54bn
In return, Shell must pay 85% of the cost of cubic metres of gas). The licences are adjacent
acquiring and processing a 3D seismic survey, to the North Yorkshire coast in the southern
due for completion by the end of May, up to a North Sea. Endeavour was the first find to be
$5mn gross cap. Once this cap is exceeded, Shell’s made, back in 1966 by France’s Total. Egdon
share of costs will fall to 70%. obtained the licences in the UK 25th licensing
The Anglo-Dutch major will also cover 100% round in 2010.
of all study and manpower costs up to an invest- Shell also farmed into two other southern
ment decision on a well. Under licence extension North Sea licences year held by London-based
terms agreed with the OGA in June, the pair Cluff Natural Resources, now known as Deltic
must commit to that well by the end of Novem- Energy. The pair are set to spud two wells at the
ber 2022. sites in as many years. ™

Anasuria Hibiscus revenues collapse

after it defers all oil sales

UK NORTH Sea-focused Anasuria Hibiscus UK Though creating significant challenges, the
suffered a 98% collapse in revenues in the quar- current market also provides opportunities for
The Malaysian-owned ter ending June 30, after deferring all its oil sales. Anasuria Hibiscus to expand through acqui-
company wanted The company, owned by Malaysia’s Hibiscus sitions, it said. This is “as established explora-
to wait for prices to Petroleum, earned just GBP323,570 ($427,000) tion and production players, especially those
recover. in the three-month period, versus GBP16mn in Europe, assess their portfolios in light of an
a year earlier. What funds it did generate were increasing focus on the renewable energy space.”
from gas sales, while it postponed oil offtakes “The group has previously reiterated that
until July “in an attempt to realise higher oil it is positioning itself to acquire good-value,
prices.” high-quality producing assets in our areas of
Anasuria’s pre-tax losses were GBP4.9mn, geographic focus,” its managing director Ken-
down from GBP7.2mn. neth Pereira said. “With asset values dampened
The company postponed sales from its Anas- due to the current oil market, we see this period
uria floating production storage and offloading as an opportunity to add to our portfolio of pro-
(FPSO) vessel in the UK North Sea in light of ducing assets.” ™
the coronavirus (COVID-19) pandemic. The
crisis saw Brent plunge to the mid-$20s in April,
but it has since recovered to above $45, thanks
to recovering fuel demand and production cuts.
The Anasuria FPSO takes oil from the Teal,
Teal South, Guillemot and Cook fields. Anas-
uria Hibiscus bought two more North Sea fields,
Marigold and Sunflower, and closed the takeover
of the Crown oil discovery in December.
Anasuria Hibiscus wants to develop these
three deposits together using an FPSO, but it is
yet to shore up a plan. It has said, though, that it
expects to take a final investment decision (FID)
on Marigold and Sunflower this year.

P16 www. NEWSBASE .com Week 34 27•August•2020