Newly formed Norwegian exploration firm Origo Exploration has given a boost to its exploration portfolio by signing three farm-in transactions involving four licenses: two on the UK Continental Shelf, and two on the Norwegian Continental Shelf.
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Image from Origo. |
This will see the firm, during its first year of operation, involved in three exploration wells, one in the UK and two in Norway. The company, which is financed by three international investors; BNRI, Riverstone and Temasek, will also participate in a 500sq km 3D seismic acquisition program West of Shetland this year.
The firm's backers have together committed US$525 million to pursue Origo’s exploration-led strategy.
"In the current market with lower oil prices compared to previous years, we are seeing multiple attractive opportunities in both the UK and Norway for well financed exploration companies, exceeding our initial expectations", said Svein Ilebekk, the firm's CEO, previously of Agora Oil & Gas, which was bought by Cairn Energy in 2012, and Revus Energy, bought by Wintershall in 2008. "Our target is to participate in up to five exploration wells each year over the next five years, and having already secured three wells at this stage of 2015, we are pleased with our progress", added Ilebekk.
The company was founded by Andrew Armour, Timothy Sullivan, Svein Ilebekk, Kent Høgseth, Ørjan Gjerde and Erik Samuelsen, all recognized as experienced professionals from the E&P industry in Norway and the UK.
Origo has signed an agreement to acquire 25% of licenses P2074 and P1932 from operator Chrysaor, in UK waters West of Shetland (water depth ~150m). During the summer of 2015 an exploration well will be drilled on the Mustard prospect in P2074. In addition a 500sq km 3D seismic survey will be acquired in P1932.
On the Norwegian Continental Shelf, Origo Exploration has signed agreements with Statoil and ExxonMobil for PL072D/PL072E/PL072F, in which these companies assigned 10% and 20% respectively to Origo. The license is planning to drill an exploration well on the Knappen prospect, located in the North Sea, east of the Sleipner field. The well is subject to final authority approval.
Origo has recently signed an agreement with Wintershall to acquire a 15% interest in PL378, where an exploration well has recently been spudded on the Crossbill prospect. The well result is expected in June.
P2074 (Mustard) and P1932 are located close to the Solan field, West of Shetland. Following the transaction the license owners are Chrysaor (operator and 50%), DEA (25%) and Origo (25%).
PL072D/PL072E/PL072F (Knappen) is east of the Sleipner field. After the transaction the license owners are Statoil (operator and 40%), ExxonMobil (30%) and Origo (30%).
PL378 (Crossbill) is in the North Sea adjacent to the Skarfjell and Grosbeak discoveries. Following the transaction the license owners are Wintershall (operator and 30%), Talisman (17.5%), Capricorn Norge (20%), Explora Petroleum (17.5%) and Origo (15%).
Origo Exploration is a newly established oil company with a strategy to explore the Norwegian and UK continental shelves.
Since its start-up in late August 2014, Origo has built a team of twenty experienced professionals, including 15 geoscientists. Earlier this year Origo qualified to hold exploration licenses in both Norway and the UK.
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