Zennor Petroleum Ltd. conditionally agreed to buy from First Oil Expro Ltd., part of First Oil Group, subsidiaries First Oil & Gas Ltd. (FOGL) and Antrim Resources (NI) Ltd.
The subsidiaries hold interests in Mungo and Monan, Bacchus, Cormorant East, and Causeway oil fields. The FOGL and Antrium units remain outside administration and will become wholly owned by Zennor.
Zennor’s wholly owned Zennor North Sea Ltd. entered a separate purchase agreement to acquire First Oil’s remaining interest in Cormorant East field and in undeveloped discoveries designated Glenn and Platypus.
EnQuest acquired 10.5%, raising its interest to 70.5%. With the acquisition of 4.5%, Cairn’s interest increases to 29.5%.
The Kraken fields, in 110 m of water 350 km northeast of Aberdeen, are being developed for production via a floating production, storage, and offloading vessel with 25 development wells.
EnQuest expects production to begin in the first half of 2017.
KPMG said discussions are under way for disposition of First Oil’s remaining assets.