Your account already exists. Please login first to continue managing your settings.
Bridge Energy has completed the acquisition of a 1.55% working interest in the producing Boa field from OMV (UK) Ltd. for an adjusted consideration of $18.1 million with an effective date of Jan. 1, 2012, according to a news release.
The acquisition includes a transfer of around 40,000 bbl of oil stock that will be sold following completion for an estimated value of around $4.4 million (based on prevailing prices of around $110/bbl).The acquisition is being funded through a combination of current cash and Bridge’s existing reserve base lending facility, the release stated. The acquisition increases Group 2012 production by 230 b/d and 0.2 Mcf/d of sales gas, which is equivalent to 260 boe/d combined.
The unitized Boa field extends across the UK/Norway median line and lies 88.65% in Norway Block 24/6 and 11.35% in UK blocks 9/15a and 9/15b. The Boa reservoir is contained within a high-quality upper Heimdal sand and comprises a light oil rim with an overlying gas cap and very strong natural aquifer drive, the release said. The field had produced around 25 MMbbl of oil up to the effective date of the acquisition and is producing 15,000 b/d gross.
The Boa working interest adds 0.5 MMbbl of 2P developed producing reserves to Bridge. The field delivers low maintenance oil production with a high operating margin. Bridge estimates that at an oil price of $110/bbl, it will receive over $100/bbl after tax for production during 2012-14 as a result of Bridge’s accumulated tax pool, the release stated.