EnQuest Announces Agreement with Suncor Energy UK Limited’s Golden Eagle Area | EnQuest Announces Agreement with Suncor Energy UK Limited’s Golden Eagle AreaFinancial Buzz

EnQuest Announces Agreement with Suncor Energy UK Limited’s Golden Eagle Area

EnQuest PLC has announced an agreement with Suncor energy UK Limited to acquire Suncor’s entire non-operated equity interest in the Golden Eagle area, which is comprised of Golden Eagle, Solitaire and Peregrine fields for a preliminary consideration of USD 325 Million.  EnQuest will acquire 100% of the shares in North Sea (Golden Eagle) Resources Ltd., a new entity that will, at the transaction close, hold Suncor’s non-operated equity interest in the Golden Eagle area.  The initial consideration will have an additional contingent consideration of up to USD 50 Million.  The contingent is payable within the second half of 2023. EnQuest plans to finance the transaction through a combination of new secured debt facility, an equity raise and interim period post-tax cash flows between the economic effective date of January 1st, 2021 and completion. 

“We are delighted we have agreed the acquisition of a material interest in Golden Eagle, a high-quality, low-cost UK North Sea development. Upon completion, this acquisition will add immediate material production and cash flow to EnQuest and will allow us to accelerate use of our substantial tax losses. It also demonstrates our continued commitment to the UK North Sea and diversifies our existing production base. 

“The assets have a strong safety record and a lower than average CO2e emissions intensity ratio. 

“We look forward to a productive partnership with the operator, CNOOC and our future joint venture partners, NEO Energy and ONE DYAS.”

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