Scottish oil explorer Cairn Energy has announced the acquisition of Agora Oil & Gas, a private Norwegian company with non-operated, exploration, appraisal and development assets in the United Kingdom and Norwegian North Sea.
The transaction is subject to consent from the relevant regulatory authorities in the UK and Norway.
Agora will add drilling activity to Cairn's 2012 exploration and appraisal programme, with nine wells, eight firm and one contingent, scheduled to be drilled in the UK and Norway in 2012.
The proposed acquisition includes Agora's 15 per cent stake in the Catcher area planned for development and a 20 per cent interest in the Tybalt discovery, which both have further drilling programmes planned this year.
"This is an important first step in establishing balance in the Cairn portfolio,” said Simon Thomson, chief executive of Cairn Energy PLC. “This acquisition secures a building block in areas where we see the opportunity to build cash flow from near term, lower risk exploration, development or producing properties.”
“Agora possesses attractive core assets and significant exploration potential both in 2012 and beyond in an area offering future organic growth. Like the Cairn team, the Agora team have a proven track record of adding and realising value for shareholders.
The addition of these assets will aid the company's vision to create significant value within a well balanced portfolio of exploration and production assets."
"Our team is delighted to become part of a leading industry exploration company,” said Svein Ilebekk, chief executive of Agora Oil & Gas. “Cairn is a strongly funded business, providing financial flexibility for our next phase of growth. We have a shared mindset and, together, we have the capacity to expand our exploration efforts and to realise the full potential of the business. Cairn's extensive offshore and operating experience will combine very well with our technical subsurface and commercial skills in the region."
