Independent oil and gas producer and developer EnQuest PLC said Sept. 7 that it will exercise its options to purchase the remaining 75% stake in the Magnus field in the North Sea from BP PLC. The cash consideration for Magnus will be funded through a US$138 million rights issue.
In early 2017, London-based EnQuest agreed to acquire 25% of the Magnus, Thistle and Deveron fields, together known as the Magnus project, from BP.
The acquisition of the remaining 75% would hike Enquest's reserves by approximately 60 million barrels of oil equivalent per day. EnQuest said funds from the rights issue will primarily be used for the $100 million cash consideration and to deliver a two-well 2019 infill drilling program.
"Our view of Magnus as a high quality asset has been enhanced since acquiring our initial 25% interest. The option is on attractive economic terms and upon completion, our increased ownership will provide the Group with an immediate and material increase to the existing 2P reserves and annual production," EnQuest CEO Amjad Bseisu said.