CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Zennor Petroleum: Finlaggan gas field approved by UK regulator

The UK oil and gas company has gained regulatory approval for its Finlaggan gas field shortly after acquiring Britannia Field interest from Mitsui E&P UK.

Kyle Rodda KyleR_IG
Market Analyst, Australia

Publication date : 2018-10-22T17:54:05+0100

Oil and gas offshore rig

Source: Bloomberg

Zennor Petroleum announced on Monday that it has gained regulatory approval from the Oil & Gas Authority (OGA) to move ahead with the development of its Finlaggan gas field based in the UK Central North Sea.

‘The [OGA] is pleased to approve the Finlaggan field development,’ Scott Robertson, Area Manager for Central North Sea at the OGA said.

‘The gas field, which was discovered 13 years ago, will tie-back to the Britannia facilities, utilising existing infrastructure, maximising economic recovery from the region,’ he added.

The development is expected to produce around 26mmboe, with the first production from the Finlaggan gas field to come in the fourth quarter (Q4) 2020, the company said.

‘This year has been transformational for Zennor,’ Managing Director Martin Rowe said in a statement. ‘We recently announced the strategic acquisition of an 8.97% working interest in the Britannia Field, subject to partner and regulatory approval, which has doubled our production to circa 5,000boepd.’

‘We greatly appreciate the support we have received from the OGA, our banking syndicate and our key contractors and partners in enabling us to push forward with the execution of the Finlaggan project; a key foundation stone of our growing portfolio,’ he added.

The acquisition of the Britannia Field is strategically important for the company and its wider growth ambitions for the Finlaggan development.

The company also announced on Monday that it has signed a £170 million debt facility that will finance the development of the newly approved Finlaggan development.

Zennor was founded in 2006 under the name MPX E&P, with the company majority-owned by private equity Kerogen Capital after it acquired a controlling stake in the business back in 2015.

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