Finder Energy Holdings has announced the signing of a farmout agreement to assign a 40% interest in Seaward Production Licence P2530 to Serica Energy (UK). Finder will retain a 20% interest in, and operatorship of, the Licence.
The transaction is conditional on the written direction of the North Sea Transition Authority (NSTA) extending the Licence term, the NSTA approving the transfer to Serica and other required consents and approvals. The NSTA has provided a letter to Finder stating that it will grant a 9 month extension to Phase B to 31 August 2026 and a 12 month extension to Phase C to 31 August 2028. Finder is working toward the satisfaction of the remaining conditions precedent and expects the transaction will complete before year end.
The consideration payable to Finder under the farmout agreement comprises:
• £500,000 (~A$1 million) payable on completion;
• a carry of Finder’s share of joint venture costs to the end of Phase B; and
• £936,000 (~A$1.9 million) subject to the Licence transitioning to Phase C.
P2530 contains the Wagtail Discovery (19 MMbbl Gross 2C Contingent Resources) and the low-risk Marsh and Bancroft exploration prospects. Wagtail was discovered in 1986 and intersected an 11 metre net oil column in the Fulmar reservoir sandstones. Finder completed a high-end reprocessing of the seismic data, called the Big Bird 3D and integrated this with new geotechnical studies which showed the Wagtail Fulmar reservoir sands increasing in thickness and quality towards the east of the discovery well.
Additionally during Phase B, Finder completed a pre-feasibility study for the potential development of Wagtail via tieback to the Triton FPSO via the Pict field 20km to the south (see Figure 1). The Triton FPSO is operated by Dana Petroleum, Finder’s current partner in P2530. Serica is also a partner in the Triton FPSO and the wider area, making them a natural partner for P2530 and the Wagtail Discovery.
The 9 month extension of Phase B will allow for additional development engineering feasibility studies to confirm integration of Wagtail with the Triton FPSO and its surrounding subsea infrastructure. These studies are required to support a decision to enter Phase C of the Licence and commit to drill an appraisal well on Wagtail or discontinue the Licence at the end of Phase B.
With Serica joining the P2530 joint venture, both owners of the Triton hub will now be partners in P2530 which will facilitate development in the event of a successful appraisal of Wagtail.
Source: Finder Energy
