Fairfield to buy UK North Sea assets from Shell, Esso

Fairfield Energy Ltd. has begun exclusive negotiations with Shell UK and Esso Exploration & Production UK to purchase their interests in certain UK North Sea assets later this year.

Uchenna Izundu
International Editor

LONDON, June 15 -- Fairfield Energy Ltd. has begun exclusive negotiations with Shell UK and Esso Exploration & Production UK to purchase their interests in certain UK North Sea assets later this year.

Fairfield wants to acquire their combined 56.8% interest in Dunlin and Dunlin Southwest fields, 97.6% interest in Merlin field, and 100% interest in Osprey field in the Northern North Sea. The parties did not disclose prices.

"Assuming successful completion of the transaction and requisite approvals, Fairfield is expected to assume operatorship later this year," Fairfield said. "The company currently is active in the appraisal of abandoned Maureen and Crawford fields and plans to drill an appraisal well on Crawford during 2007."

Fairfield has pledged to maintain the long-term integrity of the Dunlin facilities. The company said it also would drill additional wells on all of the fields to increase reserves and production volumes.

Mark McAllister, Fairfield's chief executive, told OGJ the company wants to upgrade the drilling rig for Dunlin and find a semisubmersible to drill on the satellite fields as soon as possible when the transaction goes through. He declined to give further details on drilling plans at this time. McAllister said the companies hope to finalize the deal for the fields as soon as possible. "There is a lot of transitional planning to do."

Contact Uchenna Izundu at uchennai@pennwell.com.

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