Zennor completes First Oil buy, re-launches firm

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Zennor Petroleum today confirmed it had completed the purchase of First Oil’s subsidiary First Oil Expro and Antrim Resources.

The double move includes interests in the North Sea’s Mungo and Monan producing fields, Bacchus, Cormorant East and Causeway licences.

Zennor will re-launch the firms as Zennor CNS Limited and Zennor Resources Limited in a bid to align them with Zennor’s other subsidiaries.

Zennor’s acquisition of First Oil’s remaining interest in Cormorant East and its interest in two undeveloped discoveries, Glenn (Licence P244 JR) and Platypus (Licence P1214), are expected to be completed in the coming weeks.

First Oil was put into voluntary administration ahead of its now unaffordable multi-million pound injection due on Kraken.

At the time, First Oil said its bank had pulled out of lending on the basis of oil reserves, making refinancing impossible.

Faltering oil price levels and investor confidence has forced to the Oil and Gas Authority to set-up a special group tasked with pleading the sector’s case to possible backers.

OGA chief executive Andy Samuel said: “More recently we’re paying attention to financial aspects as well, because assets, operators and co-ventures are not just connected physically they’re also connected financially,” he said.

“As Sir Ian was concerned, some very good companies are facing some very difficult times.

“I have formed a contingency planning team within the OGA that is targeted specifically at addressing, where possible, those risks and doing everything we can to help support companies, getting in early, understanding the issues and intervening where possible.

“If we can help increase confidence with the investment community we will do everything we can.”

Elsewhere, EnQuest has reportedly drafted in help to manage its debt portfolio as it battles a depressed oil price environment. Read more here.