Spring Energy: Step change through acquisition of first producing asset and attractive exploration and appraisal portfolio
- 2.5 % working interest (WI) in the producing Brage Field. Effective date is 1 January 2010.
- 10 % WI in PL 341, located in the North Sea and where the Stirby prospect is scheduled to be drilled in 2010. Effective date is 1 January 2010.
- 15 % WI in PL 475 & PL 475BS, located in the Norwegian Sea and where the Maria prospect is scheduled to be drilled in 2010. Effective date is 1 January 2010.
- 15 % WI in PL 375, located in the North Sea and where an appraisal well is currently being drilled on the Beta oil discovery. Effective date is 1 January 2009.
- 10 % WI in PL511, located in the Norwegian Sea and where the Mjøsa prospect is scheduled to be drilled in 2011 – 2012. Effective date is 1 January 2010.
Spring will compensate Wintershall by transferring a 5 % WI in PL 378 and also carry part of the exploration well costs on behalf of Wintershall on the exploration wells listed above.
“This transaction adds significant value to our shareholders. The interest in the Brage field provides Spring Energy with its first oil production and the transaction is thus a strategically important step for Spring Energy in becoming a fully integrated E&P company. The transaction also demonstrates Spring Energy’s ability to transform high quality discoveries into production through a swap structure. In addition this transaction adds four very exciting exploration and appraisal wells to our drilling queue, which after this transaction now totals 10 wells to be drilled over the next three years”, says Roar Tessem, CEO of Spring Energy.
Following the transaction Spring Energy still retains a 15 % WI in the prolific PL 378 license, where the significant Grosbeak oil and gas discovery was made this summer. Further exploration and appraisal drilling will take place in PL 378 during 2010.
The transaction is subject to Authority approval.