This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Zennor Petroleum announced on Monday that it has gained regulatory approval from the Oil & Gas Authority (OGA) to move ahead with the development of its Finlaggan gas field based in the UK Central North Sea.
‘The [OGA] is pleased to approve the Finlaggan field development,’ Scott Robertson, Area Manager for Central North Sea at the OGA said.
‘The gas field, which was discovered 13 years ago, will tie-back to the Britannia facilities, utilising existing infrastructure, maximising economic recovery from the region,’ he added.
The development is expected to produce around 26mmboe, with the first production from the Finlaggan gas field to come in the fourth quarter (Q4) 2020, the company said.
‘This year has been transformational for Zennor,’ Managing Director Martin Rowe said in a statement. ‘We recently announced the strategic acquisition of an 8.97% working interest in the Britannia Field, subject to partner and regulatory approval, which has doubled our production to circa 5,000boepd.’
‘We greatly appreciate the support we have received from the OGA, our banking syndicate and our key contractors and partners in enabling us to push forward with the execution of the Finlaggan project; a key foundation stone of our growing portfolio,’ he added.
The acquisition of the Britannia Field is strategically important for the company and its wider growth ambitions for the Finlaggan development.
The company also announced on Monday that it has signed a £170 million debt facility that will finance the development of the newly approved Finlaggan development.
Zennor was founded in 2006 under the name MPX E&P, with the company majority-owned by private equity Kerogen Capital after it acquired a controlling stake in the business back in 2015.
.jpg)
