Third Energy to purchase Atlantic Petroleum’s interest in Pegasus Discovery
EAST KNAPTON, United Kingdom -- Third Energy Offshore Ltd. has signed a sale and purchase agreement with Atlantic Petroleum for Atlantic Petroleum’s interests in P1724 (UK Block 43/13b, which contains the Pegasus West Gas Discovery), P1727 (UK Blocks 43/17b and 43/18b) and P2128 (Block 43/12).
Under the sale and purchase agreement, Third Energy will purchase Atlantic Petroleum’s 10% working interests in the above licenses for a total potential consideration of $25.5 million (£16.5 million) of which $11.5 million (£7.5 million) will be paid on completion. Remaining payments are conditional on production from Pegasus West and further development in the blocks.
The Pegasus West well (43/13b-7) was drilled and tested at a combined rate of 91 MMscfd in late 2014. The well is approximately 7 km WSW of the 43/13b-6Z Pegasus North discovery well. Both wells are in P1724, close to the producing Cavendish field. The licenses are operated by Centrica Energy, which holds 55% equity. Atlantic Petroleum holds 10% equity and the remaining equity, 35%, is held by Third Energy Offshore.
Rasik Valand, CEO of Third Energy, said, “Third Energy is of the view that the separate pools of gas that comprise the Greater Pegasus structure and additional undeveloped near-by discoveries could ultimately lead to the development of a major new gathering hub in this part of the Southern North Sea. We look forward to continue working with our partner Centrica on the field development plan for the Pegasus West discovery and evaluation of the Greater Pegasus area.”