Oilexco Incorporated announces that its wholly owned subsidiary, Oilexco North Sea Ltd, has signed a Share Purchase agreement for Svenska Petroleum Exploration UK Limited ("Svenska") for US $25 million in cash. The purchase will give Oilexco the following interests:
- A 1.66% unitized equity interest in the Nelson field and platform.
- A 6.45% working interest in the Janice and James fields and floating production vessel.
- A 40% working interest in Block 30/23b, south east of Janice.
Arthur Millholland, Oilexco President and CEO commented,
"The Svenska purchase represents another important step for Oilexco's continued expansion in the UK North Sea. While our primary mechanism for growth has been by the drill bit, we have always stated that we will make acquisitions that are specifically accretive to our objectives, and Svenska is an example of this."
Svenska's share of production from the Nelson and Janice/James fields was approximately 750 barrels per day in 2007, and consisted almost entirely of oil. Production at the Janice/James fields has been suspended since late in 2007, but is expected to resume production in the second quarter of 2008. Some tariff income is currently realized from the Nelson platform, and the Janice floating production vessel is expected to receive tariff income late in 2008 as a result of production beginning in a nearby field. The agreement is expected to close within several weeks and will be effective January 1, 2008.
View our focused North Sea Focus link and stay in touch with the latest news and companies active in this region
Review all our latest Acquisitions and Mergers news
