EnQuest signs deal for sole ownership of Bentley heavy-oil discovery

EnQuest PLC has agreed to purchase Whalsay Energy Holdings Ltd.'s 100% equity interest in the UK North Sea license P1078 containing the Bentley heavy-oil discovery.

Bentley lies 15 km east of Kraken field and 8 km southeast of Bressay field—both EnQuest operated—in water depth of 113 m. The undeveloped field is thought to hold 900 million bbl oil in-place. 

The field was discovered in 1977 and has been appraised through the drilling and testing of 6 further wells and two sidetracks, including extended well tests in 2012 which delivered production rates of around 3,500 b/d of oil and an average of 2,600 b/d of oil over a 68 day well test.

Completion of the deal is subject to certain conditions, including the UK Oil and Gas Authority granting an extension of the existing license term, which is currently due to expire June 30, 2021, and the receipt of third-party approvals.

On completion, EnQuest will fund certain accrued costs and obligations expected to total less than $2 million. No other upfront consideration is payable. EnQuest will make deferred payments to Whalsay based on future revenues generated by WEL which are capped at $40 million.