ConocoPhillips to sell stake in three North Sea oil fields to Endeavour for $330 mn
27 Dec 2011
US oil giant ConocoPhillips is selling its interest in three producing UK oil fields in the Central North Sea to oil and gas exploration company Endeavour International Corp, for $330 million.
The sale comes a month after the Houston-based company agreed to sell its interests in two US pipeline companies for $2 billion as part of its ongoing strategy to create shareholder value.
The acquisition of the three oil fields – Alba, MacCulloch and Nicol, together with its Bacchus and Greater Rochelle oil fields, Endeavour said that it will become one of larger independent oil company in the North Sea.
The deal that is expected to close in first-half of 2012, will may boost Endeavour's proved plus probable reserves to almost 80 mmboe from 44 mmboe at year-end 2010.
Current net production from the assets is about 10,000 barrels of oil equivalent per day, and Endeavor estimates that proved and probable reserves there as of June were more than 33 million barrels of oil equivalent.
William Transie, chairman, CEO and president of Houston, Texas-based Endeavour said, "This acquisition increases our current ownership interest in the Alba Field, a late Eocene reservoir that has been producing since 1994."
Post completion, Endeavour is planning to become operator of the MacCulloch field.
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