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- Finder Energy (FDR) enters agreement with Talon Energy (TPD) to acquire 100 per cent of the Seaward production licence (P2527) in the UK Central North Sea
- The licence covers an area of 110 square kilometres in water depths of about 100 metres
- It contains the White Bear prospect, which is located adjacent to one of the most significant oil discoveries in the North Sea, the Buzzard field
- The terms of the acquisition will see Talon receive 12.5 per cent of gross income generated from the licence, with Finder not required to make any up-front cash or share payments
- FDR shares steady at 21 cents and TPD shares up 5.56 per cent to one cent
Finder Energy (FDR) has entered an agreement with Talon Energy (TPD) to acquire 100 per cent of the Seaward production licence (P2527) in the Central North Sea in the UK.
The licence covers an area of 110 square kilometres in water depths of about 100 metres.
It contains the White Bear prospect, which is located adjacent to one of the most significant oil discoveries in the North Sea, the 1.5-billion-barrel Buzzard field.
Finder said P2527 complements its existing P2528 licence, where the company was mapping Buzzard analogues.
The terms of the acquisition include Talon retaining the rights to 12.5 per cent of gross income generated from the licence such as from a farm-out or divestment, which converts to a royalty of three per cent of Finder’s retained net share of produced petroleum during any production.
Finder said there were no up-front cash or share payments to be made to Talon.
“Western European nations, and the United Kingdom in particular, are in great need of new oil and gas reserves due to regional conflict and sanctions on Russia,” CEO Damon Neaves said.
“Energy companies are heeding this call and very favourable conditions are emerging for farm-out and drilling activity in the North Sea.
“Finder has timed its entry into the North Sea perfectly and this highly complementary acquisition increases our leverage to this basin on compelling terms.”
FDR shares were steady at 21 cents and TPD shares were up 5.56 per cent to one cent at 11:04 am AEST.
