Today Bayerngas UK Ltd announced it has agreed to purchase a 13% interest in UKCS License P456 containing the Babbage Gas Field from Centrica Resources Ltd.
The Field is located in UKCS Block 42/2a in the Southern North Sea and came on-stream in 2010. There are currently three production wells in use. A second phase of drilling is almost complete with two more wells expected to increase production before the end of 2013.
The pending effective transaction date, which remains subject to regulatory approval, is January 1, 2014. Subject to completion of the transaction, the partners in the license will be E.ON 47% (Operator); Dana Petroleum 40% and Bayerngas 13%.
Speaking for Bayerngas UK Ltd, Managing Director Gerry Harrison said: “We are delighted to reach agreement with Centrica to purchase this asset. Although relatively small, it complements our existing UK production at Clipper South and our major development project, Cygnus. It also allows us to join strong and experienced partners to evaluate further potential in the license. Together with our existing exploration portfolio, which we will start to test with our first exploration well early next year, we are building a solid UK business.”
The purchase price has not been publicly disclosed.