EnQuest sells Bressay share to RockRose

EnQuest announced an agreement with RockRose UKCS 10 Ltd, a subsidiary of Viaro Energy, over the sale of a 15% working interest in both the Bressay field and the EnQuest Producer floating production, storage, and offloading (FPSO) vessel on Friday.

The London-listed firm said both of the assets are situated in the UK North Sea.

It said the agreement included total consideration of £46m for the Bressay field and FPSO, comprising an initial payment of £34.75m from RockRose to EnQuest, with those funds to be used for general corporate purposes.

The remaining £11.25m would be paid from future Bressay cash flows.

RockRose would also be responsible for covering its equity share of capital spend related to the Bressay development, following an established schedule and necessary approvals.

“We continue to progress the development of the wider Kraken area, including a Bressay gas tie-back solution to reduce Kraken emissions, as well as an early production solution project at Bressay,” said EnQuest’s North Sea general manager, Steve Bowyer.

“We look forward to working with Rockrose, Waldorf - our Kraken joint venture partner - and the NSTA to move the project forward.”

At 0904 GMT, shares in EnQuest were up 4.98% at 14.94p.

Reporting by Josh White for Sharecast.com.