Hibiscus has announced that its indirect wholly-owned subsidiary, Anasuria Hibiscus UK ('AHUK') has executed a Sale & Purchase Agreement ('SPA') with EnQuest in respect of certain interests in the UK Continental Shelf Petroleum Production Licence Number P238 Block 21/19a, Eagle Pre-Producing Area ('Eagle Field'). The Eagle Field is located approx. 6.4 km to 15 km from various Anasuria facilities, and due to its proximity, facilitates a potential subsea tie back to the Anasuria FPSO which could extend the latter’s economic life.
Under the terms of the SPA, the consideration for AHUK’s acquisition of 85% in the Eagle Field from EnQuest is a nominal USD1 due to EnQuest on SPA completion plus the the cost representing AHUK’s carry of EnQuest’s remaining 15% from completion of the SPA through to first oil. Such costs of the carry are presently estimated to be approx. USD7.5 million. The conditions precedent to completion are subject to customary regulatory and third party approvals. In addition, the terms of the deal include the transfer of operatorship of the licence to AHUK, according to the provisions to be contained in a Joint Operating Agreement between AHUK and EnQuest, which shall be signed at SPA completion
