Enegi Oil strikes new North Sea deal

MANCHESTER-based oil exploration firm Enegi Oil has struck a deal to target an oil field in the North Sea.

Together with its joint venture partner, ABTechnology, it has signed an agreement with Antrim Resources which holds the licence for the Fyne Field.

ABT has devised a way of extracting difficult to reach oil using buoy technology.

The two companies are targeting oil fields that are already known about but are currently considered to costly to extract.

Under the latest agreement Enegi and ATB will cover the costs of preparing an amended development plan for the oil field which will be submitted to the Government. If approved the joint venture will earn a 50% interest in the development.

Chief executive Alan Minty said: “This is an example of how we can use the buoy solution to gain reserves and production in well appraised, and therefore geologically low risk, assets for a fraction of the price of traditional acquisition routes.

“The Fyne field is an ideal opportunity to show the potential of the buoy solution and is an example of how significant value can be unlocked in an asset which would otherwise have remained undeveloped.”