Fairfield Energy Announces Farm-Out Agreements with TAQA
13 February 2012
Fairfield Cedrus Limited (“Fairfield”), a subsidiary of Fairfield Energy Limited, the North Sea focused independent oil and gas exploration, development and production group, is pleased to announce that it has agreed to farm-out a 50% interest in licences P184, P474 and P1634 to TAQA Bratani Limited, a subsidiary of the Abu Dhabi National Energy Company PJSC (“TAQA”). In consideration for the farm-in to the licences, which are collectively known as Darwin, TAQA will fund a work programme and make a cash payment to Fairfield.
The Darwin acreage comprises the North West Hutton blocks 211/27a and 211/27c, together with an extension into block 211/27e, in the Northern North Sea, approximately 130 km northeast of the Shetland Islands. Fairfield acquired an initial 0.1% position in Blocks 211/27a and 211/27c from Amoco (UK) Exploration Company, a subsidiary of BP, and its co-venturers in September 2009. This position will increase to 100% with the second stage of that acquisition process, which is anticipated to occur on or around July 2 2012. Block 211/27e was awarded to Fairfield under licence P1634 in the 25th Licencing Round in November 2008 with a one well commitment.
Whilst the transaction remains subject to approvals from the Department of Energy and Climate Change ("DECC") and various third parties, the Farm-out to TAQA of licence P1634 is expected to complete in February, with the Farm-out on licences P184 and P474 expected to complete end July.
Commenting on today’s announcement, Fairfield’s Chief Executive Officer, Chris Wright said:
“We are delighted to have reached this agreement with TAQA, which sees Fairfield partnering with a strong global industry player. With our new co-venturer we are looking forward to an active exploration and appraisal campaign and working together to develop the asset. This deal means that Fairfield continues to have significant exposure to exploration and appraisal potential in the Darwin area, whilst allowing the Company to focus on increasing production at Dunlin, advancing the other development projects in our inventory and directing significant funds into new business activities designed to further broaden the portfolio”.
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