Finder Invoices £500,000 as Farmout Completion Grants 20% Interest in P2530
Finder Energy has completed its farmout agreement with Serica Energy, acquiring a 20% interest in the Seaward Production Licence P2530 and continuing as operator during Phase B. The company is now conducting feasibility studies to determine whether to advance to Phase C or discontinue the licence.
- Completion of farmout agreement with Serica Energy
- Finder holds 20% interest in Seaward Production Licence P2530
- Finder remains operator during Phase B
- Engineering feasibility studies underway for Wagtail Discovery integration
- £500,000 invoiced to Serica upon completion
Farmout Completion Marks Strategic Milestone
Finder Energy Holdings Limited has officially completed its farmout agreement with Serica Energy (UK) Limited, securing a 20% interest in the Seaward Production Licence P2530. This move not only increases Finder’s stake in a promising offshore asset but also confirms its role as operator during the current Phase B of the licence.
Assessing the Wagtail Discovery’s Potential
The licence includes the Wagtail Discovery, which holds an estimated 19 million barrels of gross 2C contingent resources. Finder is currently undertaking engineering feasibility studies to evaluate how the Wagtail Discovery might be integrated with the existing Triton Floating Production Storage and Offloading (FPSO) facility. This technical assessment is critical in shaping the joint venture’s next steps.
Decision Point – Phase C or Discontinuation
The outcome of these studies will inform whether the joint venture proceeds to Phase C, which involves committing to drill an appraisal well on Wagtail, or opts to discontinue the licence at the end of Phase B. This juncture represents a pivotal moment for Finder and its partners, balancing the promise of resource development against commercial and technical risks.
Financial and Operational Implications
As part of the farmout completion, Finder has invoiced Serica £500,000 (approximately A$1 million), reflecting the agreed terms of the transaction. This inflow supports Finder’s ongoing operational activities and feasibility work. Maintaining operator status allows Finder to steer the project’s technical evaluations and strategic direction during this critical phase.
Looking Ahead
While the contingent resource estimates provide a promising foundation, they come with inherent uncertainties typical of early-stage oil and gas projects. The company’s forward-looking statements emphasize the need for further appraisal and evaluation to mature these resources into commercially viable reserves. Investors will be watching closely for updates on the feasibility study outcomes and any decisions regarding Phase C commitments.
Bottom Line?
Finder’s next moves on P2530 will be a key indicator of its growth trajectory in the UK North Sea sector.
Questions in the middle?
- What will the feasibility studies reveal about integrating Wagtail with the Triton FPSO?
- How will the joint venture balance technical challenges against commercial viability in Phase C?
- What are the potential financial impacts if the licence is discontinued after Phase B?
