KEYFACT Energy
Speedwell Energy has signed a Sales and Purchase Agreement (“SPA”) to sell 100% of the equity of Speedwell Energy Limited, the holder of 100% interest in the Cotton gas Field Licence P2341 in the UK sector of the Southern North Sea to RockRose Energy Plc. The transaction is subject to the usual regulatory approvals.
The field was discovered in 2009 by well 43/21b-5Z which encountered a gas column of up to 1,260 feet over six gas bearing sandstone units. Cotton contains recoverable gas resources of 97Bcf (16.7mmboe) and has the potential to produce at a peak rate of up to 70mmscf/d (12,000 boepd) from two horizontal development wells.
Speedwell has prepared a draft Field Development Plan (“FDP”) for submission to the OGA. Speedwell has been working with its key contractors on the development solution for Cotton and engagement with both them and the owners of the export infrastructure anticipated to be used is on-going. Prior to taking Final Investment Decision ("FID"), RockRose Energy will carry out further studies to ensure that both the subsurface delivery and the project economics are robust, particularly given the current challenging gas price.
The Cotton field lies 100 Km east of Scarborough between the Kilmar and Garrow fields in both of which RockRose holds a 15% interest.
Richard T Strachan, CEO of Speedwell Energy Limited said:
“Having identified the potential in Cotton some three years ago which was a relinquished asset going nowhere to one now where we have a draft Field Development Plan and a delivery team in place capable of bringing Cotton through to First Gas we are delighted that RockRose will now take over Cotton and are looking at how to potentially take it forward and we wish them all the best as they do so.”
Andrew Austin, Executive Charmain of RockRose said:
“This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the Southern North Sea Gas Basin in which we already have other producing assets. We look forward to carrying out further evaluation of the discovery prior to committing to FID.”