NEO Energy aims for control of UK North Sea Serenity discovery

NEO Energy has agreed to acquire Gran Tierra North Sea Ltd. (GTNSL), a subsidiary of Gran Tierra Energy Inc., Alberta, for $7.5 million.

GTNSL holds a 100% equity interest in UKCS license P2358 which includes the Serenity discovery, a potential future tie-back to the Bleo Holm FPSO, NEO Energy said in a release June 4.

NEO Energy views the deal as a potential growth and development opportunity, following on the heels of its merger agreement with Repsol Resources UK Ltd. In March, the privately held company entered into a transaction to merge with Repsol Resources UK to create a jointly owned UK North Sea producer (NEO, 55%; Repsol UK 45%) with expected production of 130,000 boe/d in 2025. 

Serenity field was discovered through well 13/23c-10, drilled by i3 Energy plc in late 2019. The well encountered a 20-ft thick oil-bearing sand unit at the top of the Lower Cretaceous Captain sequence. The reservoir quality was high, with porosities averaging 24.5% and oil samples, recovered by wireline, having an API of 31.5°.

The Serenity reservoir is a pinch-out of the Captain sands against the southern margin of the Halibut Horst, analogous to the Tain and Blake Flank. The sand is 11 ft thick (TVT) at the discovery well.

In October 2024, then-operator i3 Energy was granted a license extension by the North Sea Transition Authority (NSTA) to allow more time to evaluate Serenity development options (OGJ Online, Oct. 7, 2024). Gran Tierra acquired i3 Energy in 2024.

Completion of NEO Energy’s transaction with GTNSL is subject to certain conditions precedent, including consent from the NSTA in respect of the change of control of GTNSL. The transaction is expected to close in this year’s third quarter.