ENEG.L Share News (ENEG)

Independent oil and gas company Enegi has reached an agreement to potentially farm-out to part of block 3/23 in the UK North Sea to Azimuth, an exploration and production company based in Bermuda. Under the agreement Azimuth will earn a 50% interest in the exploration area, which contains the Malvolio prospect, in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis on both the Malvolio Area and the wider exploration area. This work will take place within the first 12 months of singing the agreement. Alan Minty, Chief Executive Officer of Enegi, said: "We are delighted to have reached agreement with the Azimuth team. We were only offered this block just over three months ago and the fact that we are already moving ahead with our plans for it shows our desire to deliver and prove up the value that we believe is inherent not only in this asset, but also across our portfolio."We know the Azimuth team well and are delighted to be working with them on this project. They are a hugely experienced team backed by leading industry specialists with access to extensive resources, both in terms of data and people. "The combination of our two companies and evaluating both the block's exploration opportunities and its known discovery is without a doubt the optimum way forward. We look forward to working with the Azimuth team and utilising their expertise across this project."The share price rose 6.02% to 11p by 14:20.NR