RockRose Energy has agreed to acquire Speedwell Energy (1), which holds 100% interest in the Cotton gas field in block 43/21b in the UK part of the southern North Sea.

In this connection, RockRose Energy has signed a sales and purchase agreement (SPA) for acquiring 100% of the equity of Speedwell Energy (1) from Scotland-based Speedwell Energy. The closing of the deal will be subject to receipt of the necessary regulatory approvals.

RockRose Energy said that the acquisition is being done for a limited initial consideration, with the larger part of it to be paid at the time of taking final investment decision (FID) on the offshore UK gas field.

Previously known as Carna, the Cotton gas field was discovered through the drilling of the 43/21b-5Z well in 2009. The well met a gas column of up to 1,260 feet over six gas bearing sandstone units.

According to Speedwell Energy, the offshore gas field has 97Bcf (16.7mmboe) of recoverable gas resources in place. By drilling two horizontal development wells, the field could produce at a peak rate of up to 70mmscf/d (12,000 boepd), said Speedwell Energy.

The Scottish oil and gas company had prepared a draft field development plan (FDP) for submission to the UK Oil and Gas Authority (OGA).

The company said that it has been working with key contractors on the development of the offshore gas field and also with the owners of the export infrastructure that is expected to be deployed.

Speedwell Energy CEO Richard Strachan said:  “Having identified the potential in Cotton some three years ago, which was a relinquished asset going nowhere, to one now where we have a draft Field Development Plan and a delivery team in place capable of bringing Cotton through to First Gas, we are delighted that RockRose will now take over Cotton and are looking at how to potentially take it forward and we wish them all the best as they do so.”

RockRose Energy expects to execute further studies before taking the FID to ensure that the subsurface delivery as well as the project economics is robust, amid the current challenging price of gas.

Cotton gas field to strengthen RockRose Energy’s position in the Southern North Sea gas basin

The Cotton gas field is contained between the Kilmar and Garrow fields, about 100km east of Scarborough. RockRose Energy holds a 15% interest each in the Kilmar and Garrow fields.

RockRose Energy executive chairman Andrew Austin said: “This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the Southern North Sea Gas Basin in which we already have other producing assets.”