Industry

Celtique Energie sells final stake in UK onshore oil and gas

PEDL 180 and 182 OGA

Announcements issued today confirmed that Celtique Energie has finally pulled out of onshore oil and gas exploration in the UK.

The company has sold its final stakes in the Wressle licences, PEDL180 and 182 near Scunthorpe, in north Lincolnshire. They contain the Wressle oil site, refused planning permission for production in January 2018 after a public inquiry, and the Broughton North Prospect.

According to the announcements, Celtique sold its 30% stake in the licences to Union Jack Oil (12.5%), Humber Oil & Gas (12.5%) and the licence operator, Egdon Resources (5%).

The total payment to Celtique, of just under £2.5m, is conditional on the establishment of commercial oil production at Wressle. The deal has to be approved by the Oil and Gas Authority.

The deals increase Union Jack’s holding in the licences to 27.5% and Egdon’s to 30%. The other investor is Europa Oil and Gas, also with 30%.

Today’s announcements ends a gradual withdrawal by Celtique from the UK onshore industry. At one point, the company had interests in 15 licences.

Last month, Celtique pulled out of a licence on the Leicestershire-Nottinghamshire border and another in north east Lincolnshire. Details

In 2016, it sold the Broadford Bridge licence, PEDL234, to UK Oil and Gas Investments and two 14th round licences in the East Midlands to Egdon. It also handed back two licences in the Weald (PEDL231 and PEDL243) to the Oil & Gas Authority (details).

“Confidence in Wressle”

Wressle drilling 2014 Egdon

Exploratory drilling at Wressle in 2014

Mark Abbott, Egdon’s Managing Director, said:

“Today’s transaction underlines our confidence in the quality and deliverability of the Wressle project.”

He said Egdon would “shortly submit a new planning application for the Wressle development”.

Two previous applications were refused by North Lincolnshire Council and Egdon’s appeals were dismissed at a public inquiry.

The planning inspector said Egdon had not shown that unacceptable adverse impacts to groundwater and water courses would not arise from the development.

Egdon said today additional site investigation boreholes and two deeper cored boreholes would ensure the new application addressed the inspector’s concerns.

David Bramhill, Executive Chairman of Union Jack Oil, was optimistic that recent government announcements would support the new application:

“The Written Ministerial Statement released on 17 May 2018 demonstrates an encouraging positive shift in Governmental attitude towards the importance of UK energy production and provides the Board with further comfort on obtaining a favourable development decision.”

He added:

“This acquisition, with no upfront cash payment, increases our interest in Wressle from 15% to 27.5%. The acquisition is highly attractive and significant to Union Jack’s future and reaffirms Union Jack’s and its joint venture partners’ commitment to the development of Wressle.”

Union Jack predicted it would gain 137 barrels of oil per day once the Wressle site was in production with cash flows of US$4m per year at the current oil price. The company said it estimated operating costs would be below US$15 per barrel. Mr Bramhall said:

“The economics are robust and net asset value accretive down to an oil price of US$35.”

Links

RNS from Union Jack Oil

RNS from Egdon Resources

Categories: Industry

13 replies »

  1. It looks like Celtique have seen the sinking ship for what it is first. Clever bit of business by them to reach the shore first. Anyone who invests in the World’s biggest ponzi scheme deserve everything they get to lose.

  2. Basically the situation is that the new owners expect to make pots of money if the Tories stay in power! That’s probably about right because the Tories have no concept of humanity or decency or the value of a clean environment!
    So let’s get rid of the Tories, get rid of fracking, get rid of these chancers with their Ponzi schemes and start looking after our environment and our people!

    • Corbyns finished. He’ll get smashed next election I promise. Hysteria is short lived especially in politics and tbh the peak of Corbyn mania still only amounted to coming 2nd place.

  3. As expected.

    It was predicted some while ago there would be adjustment of interests across the on-shore sector as economics started to move, and some previous adjustments showed this was underway. There will probably be more yet.

    Always some excitement about those moving out, rarely much about those moving in/growing.

    Meanwhile, petrol up by 6p/litre in May, the highest monthly increase since RAC started it’s tracker 18 years ago.

    Remember, only a few months ago we were being told by some “expert” antis there was plenty of cheap oil/gas around the world, so no need to look to UK sources! Well, we haven’t seen any apology from Mr.Vaz for what turned out to be his little gem on the station a while ago ref. Romanian migrant numbers, so I suspect none will be forthcoming from the anti “experts”. Some rely on news cycles of hours, and forget people have memories somewhat longer.

    • Read the article. American cowboy attitude to safety and wearing of PPE. American regs not British and the guys got a rash which would be the effect of cleaning any chemical agent in bare feet. This is far removed from the regulations over here in the U.K.

  4. Still no fracking. Another investor pulls out: the share is worthless unless there is fracking. No fracking=worthless shares. Still massive and motivated opposition to fracking. The company tries to get round those pesky ELECTED councillors whilst awaiting national governments “permitted development” which has no set timescale, government financial resilience check that asks for robust 10 year cash flow forecasts including decomissioning funds. Open your eyes guys. Its financially as well as ecologically reckless and stupid to put a penny more into fracking. Renewables is the only sustainable game.

    • Are you talking about wind turbine renewables, the ones that haven’t moved for the last week and probably won’t move for a few more???

  5. Doing your research is the only sustainable game, Ian. If you don’t have a clue what this section is about then you are fracked! Perhaps investors do check a bit deeper before they invest? (Petrol prices up 6p/litre in May-could be a factor?)

    This is about on-shore oil extraction-no fracking.

    Yes, Kisheny, I recall an incident in the States where pig workers were complaining the acidification of the pig drinking water was so strong it was causing them a body rash. My old company flew technical experts to the site immediately and found they had plumbed the system in wrong, so that the water for the shower block was treated as well! The Simpsons has some basis in reality.

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