The company will pay Nautical between $150m and $240m, by way of a development carry arrangement in relation to Nautical’s remaining stake in Kraken.
The company will acquire the 25% interest in blocks 9/2b and 9/2c, including the Kraken discovery, for which Nautical estimates a gross contingent resource of 160mmboe.
EnQuest will also acquire surrounding exploration acreage, with a 15% stake in blocks 3/22a and 3/26 and a 10% interest in blocks 9/6a and 9/7b.
The agreement provides the company with an option to earn a 45% farm-in interest in block 9/1a, in return for paying up to 90% of the gross cost of drilling up to two wells to appraise the Ketos discovery.
Under the deal, EnQuest will become the operator of the proposed development of Kraken.
