Xcite Energy has agreed a deal with Azinor Catalyst that will see Azinor carry out at technical evaluation of the blocks in its license P1979 in the North Sea in return for a 40% stake in the license.
Block P1979 contains blocks 9/4a, 9/8b and 9/9h and is separate to the firm's Bentley oil field blocks.
Under the agreement, Catalyst will undertake, at its own cost, a detailed technical evaluation of the license area, and, pending the results, also an Induced Polarization survey to further de-risk prospects on the license, earning an additional 10%.
Azinor Catalyst currently also has stakes in 13 licenses and 21 blocks in the central and northern North Sea and Rockall Trough. The firm counts ex-Enterprise Oil exec John McGoldrick on its advistory board.
Rupert Cole, Xcite CEO commented: "We are very pleased to be working with Catalyst, who will be able to accelerate the technical assessment of the Licence whilst we continue to focus our core attention on the Bentley field. By collaborating with Catalyst, we believe that the evaluation of these prospects and their potential value can be undertaken in the near future, so that we can meet our obligations under the Licence."
Nick Terrell, Azinor Catalyst Managing Director commented: "As part of our strategy of technology-led exploration in the UKCS, we are extremely pleased to have signed this agreement which further expands our footprint in the region. This transaction provides an entry point into a Licence with material and high potential prospectivity. We look forward to working with the Xcite team and maturing this exploration opportunity."