Enegi Sells North Sea Interest to Azimuth

Enegi Oil, independent oil and gas company, has reached agreement with Azimuth with a view to farming-out part of Block 3/23, in the UK's North Sea.

The company announced details in a statement. The Block contains the Malvolio Prospect, with the remaining acreage made up of potential exploration opportunities, it says. Under the agreement, Azimuth will earn a 50% interest in the Exploration Area in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis utilising existing seismic and well data in respect of both the Malvolio Area and the Exploration Area.

All this is subject to completion of documentation and appropriate regulatory approvals.

Enegi and ABTechnology will transfer a 50% interest in the Exploration Area to Azimuth, or its appointed affiliate. Enegi and ABT will retain a 100% working interest in the Malvolio Area.

Alan Minty, chief executive of Enegi, said: "We are delighted to have reached agreement with the Azimuth team. We were only offered this Block just over three months ago and the fact that we are already moving ahead with our plans for it shows our desire to deliver and prove up the value that we believe is inherent not only in this asset, but also across our portfolio.We know the Azimuth team well and are delighted to be working with them on this project."