Spirit Energy can confirm it has taken over operatorship of the Babbage Gas field in the UK North Sea, where it holds a 13% interest.

Spirit Energy has also taken on operatorship of the nearby Cobra licence, where it holds a 50% interest and plans to drill an additional well in the area to prove up reserves.

As previously reported on 7 July 2018, transfer of operatorship was subject to completion of the divestment of Premier Oil’s 47% interest in Babbage and 50% interest in the Cobra licence to Verus Petroleum SNS Ltd. (Verus) and securing relevant regulatory approvals. Premier Oil has confirmed the completion of its divestment on 6 December 2018. Dana Petroleum (Dana) is the other partner in the Babbage Field, with a 40% interest.

Operatorship of the Greater Babbage Area is in line with Spirit Energy’s strategy as a North-West Europe-focused oil and gas operator and will benefit from Spirit Energy’s experience and expertise in operating gas fields on the UK Continental Shelf (UKCS), particularly in the Southern North Sea.

Rune Martinsen, Spirit Energy’s North Sea Asset Director, said: “As operator we will be able to leverage our experience with this asset and area that we know well. We are looking forward to working with our new partner Verus, and existing partner Dana to maximise the value of the field.

“We will focus on safe and cost efficient operations to maximise recovery from the field. We are also hoping to add further resources in the Greater Babbage Area through planned drilling activities."

Babbage, which first came on stream in 2010, is produced via a not permanently-attended installation, 55 miles off the east coast of the UK and has a year-to-date 2018 average production of around 4,900 barrels of oil equivalent per day.

About Spirit Energy

Spirit Energy was created in 2017 following the combination of Centrica’s Exploration & Production business and Bayerngas Norge AS. The business is 69%-owned by Centrica plc, with the remaining 31% owned by Bayerngas Norge’s former shareholders, led by Stadtwerke München and Bayerngas GmbH.

The independent company was formed to combine a complementary mix of producing and development assets, and creates a robust, self-financing business to allow both organic and inorganic growth.