(Alliance News) - RockRose Energy PLC on Tuesday said it will acquire the Cotton gas field in the UK sector of the southern North Sea for an undisclosed limited initial consideration, with the larger part of consideration becoming due at final investment decision.
The oil & gas company has signed a sales and purchase agreement to acquire Speedwell Energy Ltd, which owns 100% of the Cotton gas field. The field lies 100 kilometres east of Scarborough between the Kilmar and Garrow fields in both of which RockRose holds a 15% interest.
The Cotton field was discovered in 2009 by well 43/21b-5Z, which encountered a gas column of up to 1,260 feet over six gas bearing sandstone units. Speedwell Energy estimates Cotton field contains recoverable gas resources of 97 billion cubic feet and has the potential to produce at a peak rate of up to 70 million standard cubic feet per day from two horizontal development wells.
A draft development plan for the field has been prepared by Speedwell for submission to the UK Oil & Gas Authority, RockRose said. The company, however intends to undertake further studies on the field prior to taking a final investment decision, particularly due to the current challenging gas prices.
Andrew Austin, executive chair of RockRose, said: "This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the southern North Sea Gas basin in which we already have other producing assets. We look forward to carrying out further evaluation of the discovery prior to committing to final investment decision."
RockRose Energy shares were up 1.9% in London at 1,855.00 pence each on Tuesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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