By OGJ editors
HOUSTON, Oct. 13 -- A unit of Endeavour International Corp., Houston, agreed to acquire Lundin Petroleum AB's majority interest in OER Oil AS, private Oslo independent, for $26 million. Closing is expected by yearend and is subject to government approvals.
OER produces 2,000 boed from its 2.5% interest in Njord field and its 4.4424% interest in Brage field, both off Norway and operated by Norsk Hydro AS. OER had 2.8 million boe of proved and 4.1 million boe of probable reserves as of Jan. 1.
OER also has 49% working interest in the Agat gas-condensate discovery operated by RWE Dea AG, Hamburg, exploration upside in the Brage, Njord, and Agat areas, and about $12 million in future tax benefits.
Endeavour, which became a public company in early 2004, in September was awarded nine UK North Sea production licenses covering 18 blocks. It is also prequalified as a licensee on Norway's continental shelf and holds interests in a Thailand gas development project.
Lundin said it recouped 5.5 times the January 2003 outlay for 75.88% of OER and hopes to increase investment in Norway through a single subsidiary, Lundin Norway AS. Lundin Norway holds a diverse portfolio off Norway, including interests in the producing Jotun field, Alvheim development project, and recent Hamsun field discovery.
