(Alliance News) - EnQuest PLC on Tuesday said it has completed its purchase of the P1078 licence, which contains the proven Bentley oil discovery, from Whalsay Energy Holdings Ltd.
Shares in EnQuest were trading 4.8% higher at 22.78 pence each in London on Tuesday morning.
The oil and gas production company - with operations in the UK's North Sea and Malaysia - struck a deal in April to acquire the P1078 licence by purchasing Whalsay's subsidiary, Whalsay Energy Ltd.
Whalsay's unit holds the licence as its only asset, on a cash, liability and debt free basis.
EnQuest agreed to pay Whalsay USD2 million for the entire equity interest in the Bentley discovery, plus deferred payments up to USD40 million, based on future revenue.
The Bentley oil discovery is located in the North Sea, within 15 kilometres of EnQuest's existing Kraken and Bressay operated interests, offering long-term potential development opportunities.
The company has looked to extend its assets since swinging to a pretax loss of USD20.0 million in 2020, from USD442.2 million in pretax profit the year before.
Revenue also fell in 2020 to USD856.9 million, down 50% from USD1.71 billion in 2019. The company said these decreases reflected the materially lower realised prices and lower production.
Alongside its acquisition of the Bentley oil discovery, the company has been keen to acquire assets in the North Sea's Golden Eagle oilfield.
In June, EnQuest refinanced with a new USD750 million debt facility to facilitate the acquisition of 27% interest in the Golden Eagle project.
Last Wednesday, it announced intentions to raise a further GBP36.1 million, through a placing and open offer, to finance Golden Eagle purchase.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Enquest (ENQ)