Elaine Maslin, 28th June 2012
Bridge Energy has farmed down a 15% stake in two production licences containing the Geite prospect off Norway to Agora Oil and Gas.
Agora, owned by Edinburgh’s Cairn Energy, will carry Oslo-listed Bridge Energy’s exploration well costs as payment for the stake. Drilling is expected to start in the third quarter this year.
The deal leaves Bridge, which has assets in the UK and Norwegian sectors of the North Sea, with a 15% stake in the two licences.
The other equity partners are operator Det Norske Oljeselskap, with 35%, Dana Petroleum Norway with 25% and Lotus Exploration & Production Norge with 10%.
Alfred Kjemperud, managing director of Bridge Energy Norge, said: “We are pleased that Cairn, through Agora, has joined us in the PL497 licence which demonstrates support for the technical potential of the acreage.
“Through this farm-out, Bridge is able to re-allocate its exploration capital over a wider number of prospects in support of one of our key corporate objectives.
“The 15% interest in Geite which Bridge retains, represents a substantial target and gives upside potential which could have a material value impact in the event of a discovery.”