EnQuest, an independent oil and gas production and development company listed on the London and Stockholm stock exchanges, has signed a share-purchase agreement (SPA) with Whalsay Energy Holdings.
Under the agreement, EnQuest will purchase the entire 100 percent equity interest in the P1078 license containing the proven Bentley heavy-oil discovery, a heavy-oil field located in the United Kingdom.
This discovery is located within 55 kilometers (34 miles) of the group’s existing Kraken and Bressay operated interests. The transaction will be effected through the acquisition of Whalsay’s subsidiary, Whalsay Energy Ltd., which holds the license as its only asset, on a cash, liability and debt-free basis.
On completion, EnQuest will fund certain accrued costs and obligations of WEL, which are expected to amount to less than $2 million. EnQuest will make deferred payments to Whalsay based on future revenues generated by WEL, which are capped at $40 million. Complet
