Oil and gas company EnQuest has completed the acquisition of a 26.69% stake in the Golden Eagle Area Development in the UK North Sea.
The agreement, where EnQuest agreed to buy the Golden Eagle stake from Canada's Suncor Energy, was first announced in February.
It was at the time said that EnQuest would pay an initial consideration of $325 million. with an additional contingent consideration of up to $50 million, payable in the second half of 2023, if between July 2021 and June 2023 the Dated Brent average crude price equals or exceeds US$55/bbl, upon which US$25 million is payable, or if the Dated Brent average crude price equals or exceeds US$65/bbl, upon which US$50 million is payable.
The area, operated by China's CNOOC, comprises the producing Golden Eagle, Peregrine, and Solitaire fields.
The company sees significant remaining development potential for the offshore area, with anticipated field life extending into the early 2030s. Currently, a four-well infill drilling program is ongoing, with two of the four wells onstream.
Amjad Bseisu, CEO of EnQuest, said: "We are delighted to have completed the acquisition of a material interest in the high-quality, low-cost Golden Eagle development. As a highly cash generative asset, delivering material incremental production, reserves, and resources, Golden Eagle is a great addition to our portfolio, further strengthening the company. We look forward to a productive partnership with the operator, CNOOC, and our joint venture partners, NEO Energy and ONE DYAS."
Back in February, EnQuest said the acquisition would add immediate incremental production of c.10 kboepd, c.18 MMbbls to net 2P reserves and c.5MMbbls to net 2C resources.