Zennor to be offered blocks in UKCS 32nd Offshore Licensing Round

 

Zennor Petroleum Limited (“Zennor”) is pleased to announce that its wholly owned subsidiary, Zennor Exploration Limited, has been successful in the UK’s 32nd Offshore Licensing Round (“the Round”). Zennor participated in five applications in the Round and is pleased to have been offered awards across all its application areas.

Zennor has been particularly successful in its core Finlaggan/Britannia area with the offer of a number of awards, both Operated and non-Operated, jointly with Chrysaor Production (U.K.) Limited and Chrysaor E&P Limited (“Chrysaor”). The Operated awards include the gas condensate Bowmore discovery and the MacCulloch field.

In parallel, Zennor has also been offered an Operated Licence over UKCS block 21/20b with DNO North Sea (U.K.) Limited which includes the Christian and Bligh discoveries; and a non-Operated Licence over UKCS block 21/24d with Anasuria Hibiscus UK Limited as Operator, which includes the West Teal discovery.

Martin Rowe, Zennor’s Managing Director, said:

“Zennor is extremely pleased with all the potential awards offered by the Oil and Gas Authority in the UK’s 32nd Licencing Round. They build off the awards received in the 30th Round which have put the Murlach (formerly Skua) redevelopment project into our investment plans and we hope that the offer of awards in the Finlaggan/Britannia area in conjunction with the Britannia operator, Chrysaor, will go a long way towards building an aligned growth plan for that area.

We look forward to working with all our existing and new partners to develop the potential of our 32nd Round licences. These licences represent attractive strategic fit with Zennor’s existing portfolio and will further bolster our growth plans in the UK North Sea.

For all media enquiries, please contact:

Ben Brewerton/Sara Powell, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

Zennor Announces Completion of 2019 Finlaggan Subsea Installation Campaign

Zennor Petroleum Limited (“Zennor”), through its subsidiary Zennor Pathway Limited, is currently developing the 100% owned Finlaggan field in the UK Central North Sea (block 21/05c and 21/05d, Licence P2013). The development project is targeting 30mmboe of gas condensate reserves from two subsea production wells tied back 20km to the Britannia platform.

 

Subsea Facilities Update

 

Zennor is pleased to announce that the 2019 Finlaggan subsea installation campaign utilising six separate vessels over the summer has been safely and successfully completed.

 

The programme has seen the 20km long, 10” insulated (pipe-in-pipe) Finlaggan pipeline laid and trenched. After the flushing and pigging of the pipeline the 20km long infield umbilical was laid in the open trench adjacent to the pipeline.

 

Rock dumping of the pipeline and umbilical was completed this weekend with the rock-dumping vessel the last to leave the field.

 

Critical work inside the Britannia 500 metre zone was also completed with the installation of the subsea isolation valve (“SSIV”) structure and the pull-in of the SSIV umbilical to the Britannia platform.

 

At year-end the Finlaggan project will be approaching 85% completion on a value of work done basis.

 

As previously reported, both Finlaggan production wells (F1 and F2) have already been drilled and tested, with each well flowing at more than 12,000 boepd at significantly higher than expected flowing wellhead pressures.

 

The remaining subsea scope, which includes the installation of a manifold at the Finlaggan location, will take place following the planned triennial Britannia/FPS shut down in 2020.

The Finlaggan development project remains on schedule for first production in Q4 2020 as planned.

 

Portfolio Update

 

Zennor has been progressing its operated Greenwell and Leverett projects in Block 15/29c and Blocks 21/2d and 21/3d respectively.

 

On Greenwell, Zennor is evaluating bids for wellheads and site surveys that will enable a pilot well to be drilled in 2020 to facilitate a future fast-track development. In parallel, technical discussions continue with Block 21/03a licencees over plans for the Leverett discovery. Both Greenwell and Leverett are potential tiebacks to the existing Britannia Area infrastructure, with first production targeted for 2022 and 2023 respectively.

 

Elsewhere, rapid progress is also being made on Zennor’s non-operated Platypus and Skua development projects, with both expected to reach project sanction in 2020.

 

Martin Rowe, Zennor’s Managing Director, said:

 

“The completion of this 2019 subsea construction campaign is a significant step forward in the Finlaggan project. The success of the campaign is very clearly attributed to the time and effort invested in the planning and preparation phases, the professionalism of the offshore teams and the close working relationships between the Britannia operator, installation contractor and Zennor teams. Finlaggan remains on track for first production in Q4 2020, taking our production towards 25,000 boepd in the near term.

 

Across the wider portfolio, our fully-funded development programme will see us reach production between 30,000 – 35,000 boepd by 2023.”

For all media enquiries, please contact:

 

Ben Brewerton / Sara Powell, FTI Consulting Tel: +44 (0) 203 727 1000

Email:  zennorpetroleum@fticonsulting.com

Zennor Provides Finlaggan Field Development Update

Zennor Petroleum Limited (“Zennor”), through its subsidiary Zennor Pathway Limited, is currently developing the 100% owned Finlaggan field in the UK Central North Sea (block 21/05c and 21/05d, Licence P2013). The development project is targeting 30mmboe of gas condensate reserves from two subsea production wells tied back 20km to the Britannia platform.

 

Drilling update

 

Zennor is pleased to report successful completion of drilling and testing operations. The Finlaggan production wells (F1 and F2) each flowed more than 12,000 boepd, with rates being constrained by the surface facilities. Both wells also produced at significantly higher than expected flowing well head pressures, highlighting the quality of the reservoir sections in the completed wells. The Transocean drilling rig Paul B Loyd Junior has left the Finlaggan location and has been demobilised to Invergordon. The conclusion of these offshore works represents a key step in de-risking the Finlaggan development and delivering first production in Q4 2020 as planned.

 

Subsea Facilities update

 

Zennor is also pleased to announce that construction work on the 20km subsea pipe-in-pipe system and the electrohydraulic control umbilical is proceeding on schedule for installation in Q3 2019. The primary contractor TechnipFMC and their key subcontractors are making excellent progress towards this next major project milestone.

 

Martin Rowe, Zennor’s Managing Director, said:

 

“All of our teams continue to work exceptionally hard, alongside our main contractors, to deliver the Finlaggan project safely as planned and their progress and achievements to date talk to their skill and dedication.  With the drilling and completion phase behind us we are now fully focussed on the Summer 2019 subsea installation programme which will take us another step closer to realising first production from Finlaggan next year.”

 

For all media enquiries, please contact:

Ben Brewerton / Sara Powell, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

Zennor Provides Finlaggan Field Development Update

Zennor Petroleum Limited (“Zennor”), through its subsidiary Zennor Pathway Limited, is currently developing the 100% owned Finlaggan field in the UK Central North Sea (block 21/05c and 21/05d, Licence P2013). The development project is targeting 30mmboe of gas condensate reserves from two subsea production wells tied back 20km to the Britannia platform, which is operated by ConocoPhilips.

 

Drilling update

 

Zennor is pleased to report that both Finlaggan production wells (F1 and F2) have now been successfully drilled and cased to their target depths with long and highly productive lateral sections through the Lower Cretaceous reservoirs. The results from both wells have been very encouraging with F1 demonstrating high quality hydrocarbon bearing sands in the northern extension of Finlaggan as prognosed, and F2 proving sand continuity over the previously interpreted fault between the southern two segments of the field. Zennor is delighted with the results achieved and the positive implications for reserves and productivity. Completion and clean-up operations across both wells are now under way and are expected to be finished during the current quarter.

 

 

Commercial update

 

Zennor is pleased to announce that on 28 March 2019 all major Finlaggan offtake agreements were executed in line with previously agreed commercial terms. These agreements provide for the export of Finlaggan production through the Britannia facilities, the Forties Pipeline System, the SAGE Terminal and the SEGAL System.

 

 

Martin Rowe, Zennor’s Managing Director, said:

 

“The team have worked exceptionally hard over recent months and I am delighted to see those efforts come to fruition in achieving significant commercial and operational milestones.  All aspects of the Finlaggan development project are firmly on track to deliver first production in Q4 2020 as planned and we greatly appreciate the support we continue to receive from our key contractors, partners, banking syndicate, the OGA and our shareholders.”

 

For all media enquiries, please contact:

Ben Brewerton / Sara Powell, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

Zennor Announces OGA Approval for the Finlaggan Field Development & Signing of a £170mm Senior Secured Term Loan Facility

Zennor Petroleum Limited (“Zennor”) is pleased to announce that it has received approval from the Oil & Gas Authority (OGA) to proceed with the Finlaggan Field development in the UK Central North Sea (block 21/05c), of which it owns 100%.

The development project to recover 26mmboe of 2P gas condensate reserves will include two subsea production wells tied back 20km to the ConocoPhillips operated Britannia platform. First production from Finlaggan is expected in Q4 2020.

Operational update

The Finlaggan development wells are currently being drilled by Transocean’s Paul B Loyd Junior drilling rig. The first of the two development wells, F1, has been successfully drilled through the reservoir section and is cased, cemented and ready for completion and clean-up later in the drilling programme.

The subsea construction contract has been awarded to TechnipFMC, with the main installation works planned for 2019. This includes the laying of a 10” pipe-in-pipe production flowline and electrohydraulic control umbilical back to Britannia.

Financing update

Zennor is also pleased to announce the signing of a £170mm Senior Secured Term Loan Facility to fund the Finlaggan development into production.

The facility was structured, underwritten and syndicated by Societe Generale, London Branch to BNP Paribas, DNB (UK) Limited and Nedbank Limited (together with Societe Generale, the Mandated Lead Arrangers) and Investec Bank plc and Barclays Bank plc (as Lead Arrangers).

Zennor was advised on this transaction by N.M. Rothschild and Pinsent Masons LLP, whilst Bracewell (UK) LLP advised the banks.

Martin Rowe, Zennor’s Managing Director, said:

“This year has been transformational for Zennor. 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. Today, we are fully financed to take Finlaggan through to first production in 2020.

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.”

Scott Robertson, Area Manager, Central North Sea, at the OGA said:

“The Oil and Gas Authority is pleased to approve the Finlaggan field development. 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.”

2018-10-22 Zennor Petroleum Finlaggan FDP Factsheet

For all media enquiries, please contact:

Sara Powell / Ben Brewerton, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

Zennor Acquisition of Britannia Field Interest

Zennor Petroleum Limited (“Zennor” or “the Company”) is pleased to announce that its wholly owned subsidiary, Zennor North Sea Limited, has entered into a Sale and Purchase Agreement with Mitsui E&P UK Limited (“MEPUK”) in respect of its interests in United Kingdom Continental Shelf Licences P.213, Block 16/26a, Area B and P.345 Block 16/27b Area B which represent an 8.97% working interest in the Britannia Field. Completion of the transaction is subject to customary regulatory and partner consents.

The acquisition of the Britannia Field interest is strategic for Zennor given its 100% operated working interest in the nearby Finlaggan Field. Finlaggan is scheduled to be developed as a sub-sea tieback to the Britannia platform. As notified in the Operations Update dated July 10th, 2018, Zennor is currently drilling two wells as part of the Finlaggan Field development. Further updates on Finlaggan are anticipated to be announced in the coming weeks.

The acquisition also fits with the recently announced 30th Offshore Licencing Round awards where Zennor was successful with several 100% operated awards in and around the Finlaggan and Britannia Fields. These awards include the Leverett Discovery in Block 21/03d, which may form a future potential tieback to the Finlaggan sub-sea infrastructure.

The effective date for the transaction, which doubles Zennor’s net production to circa 5,000 boepd is January 1st, 2018. As part of the transaction agreement, MEPUK will retain the majority of the decommissioning liability up to an agreed cap with Zennor being responsible for the balance.

Martin Rowe, Zennor’s Managing Director, said:

We are delighted with this acquisition which is directly aligned to our Finlaggan project and wider corporate strategy.

Creating core infrastructure hubs to deliver cost effective production is central to our approach. The ability to leverage the Britannia infrastructure will provide Finlaggan and the wider portfolio acquired in the 30th Round with a cost effective, fast-track route to production.

Operations Update: UK Central North Sea – Licence P2013

Zennor Pathway Limited is pleased to announce that the Transocean Paul B Loyd Junior semi-submersible drilling rig spudded well 21/05c-F1 on the 9th July. This is the first of two wells to be drilled as part of the Finlaggan Field development.

 

Zennor Pathway Limited (operator) holds a 100% interest in the Licence.

 

Note to editors:

Zennor Pathway Limited is a wholly owned subsidiary of Zennor Petroleum Limited, an independent UK based oil and gas company specialising in the appraisal and development of hydrocarbons offshore UK.  Zennor Petroleum is majority owned by Kerogen Energy Fund II, L.P., its parallel funds and its co-investment funds, private equity funds managed by Kerogen Capital.

 

 

 

For all media enquiries, please contact:

Ben Brewerton/Sara Powell, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

Zennor to be offered blocks in UKCS 30th Offshore Licensing Round

Zennor Petroleum Limited (“Zennor” or “the Company”) is pleased to announce that its wholly owned subsidiaries, Zennor Pathway Limited and Zennor North Sea Limited, have been successful in the UK’s 30th Offshore Licensing Round (“the Round”).  Zennor participated in 5 applications in the Round and is pleased to have been offered 5 potential awards.

Zennor Pathway Limited has been offered operated awards in and around its Finlaggan Development Project. These blocks include a small extension of the Finlaggan Field onto previously unlicensed acreage, in addition to a discovery named Leverett, which may form a future potential tieback to the Finlaggan infrastructure. Finlaggan development drilling is set to commence shortly, with the arrival of the Paul B Loyd Jnr semi-submersible drilling rig anticipated in Q3 2018.

In parallel, Zennor North Sea Limited has been offered several non-operated awards concentrated in and around Zennor’s existing Central North Sea acreage. These potential awards include additions to Zennor’s core ETAP area holding with the offer of acreage in conjunction with BP Exploration Operating Company Ltd that includes the previously developed Skua Field; alongside awards in partnership with Nautical Petroleum Ltd (a wholly owned subsidiary of Cairn Energy PLC) and Dyas UK Ltd which comprises acreage contiguous to the Company’s 30% held Ekland Prospect. Planning for Ekland exploration drilling is continuing apace with the well expected to spud later in 2018.

Martin Rowe, Zennor’s Managing Director, said:

“Zennor is extremely pleased with the potential awards offered by the Oil and Gas Authority in the UK’s 30th Licencing Round. These awards go a long way to securing the future opportunity set from which Zennor will craft an asset portfolio capable of exceeding Zennor’s strategic goal to deliver at least 10,000boepd of net production and 100mmboe of 2P/2C resource”.

 

For all media enquiries, please contact:

Ben Brewerton/Sara Powell, FTI Consulting

Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com

 

 

Completion of acquisition of UKCS Licence P2182

Zennor Petroleum Limited is pleased to announce that on 8th August 2017 its subsidiary Zennor North Sea Limited completed the acquisition of 100% interest in Licence P2182 from Ithaca Energy (UK) Limited for a minimal consideration.  The interest comprises Blocks 22/15a and 23/11d containing the Banks and Esperanza undeveloped discoveries

Completion of acquisition of UKCS Licence P359 relating to the Arran Discovery

Zennor Petroleum Limited (“Zennor”) is pleased to announce that on the 30th June 2017 its subsidiary, Zennor North Sea Limited, completed the acquisition of interests in and under United Kingdom Petroleum Production Licence P359.

 

These interests comprise (1) a 40.0002% working interest in Block 23/16b Area A (Arran North); and (2) a 66.667% working interest in Block 23/16a Area B (Arran South); and such interests together comprise a 47.35664% unitised interest in the unit area covering the Arran discovery, which is intended to be delineated as the Arran field (“the Interests”). The Interests were acquired from Esso Exploration and Production UK Limited for an undisclosed consideration.

 

The Arran discovery, located in the East Central Graben is an undeveloped gas condensate discovery. The Arran operator, Dana Petroleum (E&P) Limited is currently working towards applying for field development consent. This acquisition supports Zennor’s strategy of building a diversified UK portfolio and the longer-term objective to deliver net production of over 10,000 barrels of oil equivalent per day from a resource base of more than 100 million barrels oil equivalent of 2P/2C.

 

Martin Rowe, Managing Director, Zennor Petroleum commented:

 

“This transaction represents another important step in the delivery of our North Sea-focussed strategy, and we are looking forward to working with the Arran Operator and Joint Venture Partners to enable a timely sanction of the Arran Project.”

 

 

For all media enquiries, please contact:

 

Ben Brewerton/Sara Powell, FTI Consulting                                                     Tel: +44 (0) 203 727 1000

Email: zennorpetroleum@fticonsulting.com