Pandion Energy to acquire stake in two North Sea licences

4 January 2021 (Last Updated January 4th, 2021 13:00)

Pandion Energy has signed an agreement with Wintershall DEA Norge to acquire stakes in two North Sea licences.

Pandion Energy to acquire stake in two North Sea licences
The deal will enable Pandion Energy to increase its stake in PL 820 S to 12.5%. Credit: Keri Jackson from Pixabay.

Pandion Energy has signed an agreement with Wintershall DEA Norge to acquire stakes in two North Sea licences.

Under the agreement, the company will acquire a 2.5% stake in PL 820 S and a 15% interest in PL 617.

The deal will enable Pandion Energy to increase its stake in PL 820 S to 12.5%.

The licence is located in blocks 25/7 & 8, north-northwest of the Balder and Ringhorne field, which is 200km west of Stavanger, Norway.

The completion of the transaction, which has an effective date of 1 January 2021, is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.

With a stake of 40%, MOL Norge is the operator of PL 820 S and partnered by Lundin Energy Norway, Pandion Energy and Wintershall DEA.

Last March, Pandion Energy announced exploration drilling results for PL 820 S, revealing that wells 25/8-19 S and 25/8-19 had proved hydrocarbons at five different intervals.

Located in block 2/9, east-northeast of the Valhall & Hod fields, the PL 617 licence contains the Eidsvoll prospect.

Pandion Energy owns a 10% stake in the Valhall & Hod fields, where MOL Norge is the operator.

The licence partners, including OMV (Norge), are expected to drill the Eidsvoll exploration well this year.

In June, MOL Norge and partners announced the discovery of oil and gas in the production licence PL820 S in the Norwegian North Sea.

The discovery was made after the drilling of the exploration well to a total depth of 2,652m below sea level.