RockRose Energy to acquire Cotton gas field from Speedwell Energy

RockRose Energy has signed a sales and purchase agreement (SPA) with Speedwell Energy to acquire 100% of its subsidiary Speedwell Energy (1), which owns 100% interest in the Cotton gas field in the UK North Sea.

Located in the Southern North Sea, the Cotton field, which was formerly called Carna gas field, is situated 100km east of Scarborough between the Kilmar and Garrow fields. RockRose Energy holds a 15% stake each in the Kilmar and Garrow fields.

The UK oil and gas company said that it is acquiring the Cotton gas field for a limited initial consideration, with the large part of it to be paid at the time of taking final investment decision (FID).

The deal is subject to routine regulatory approvals.

The Cotton gas field was discovered by the drilling of well 43/21b-5Z in 2009. The exploratory well intersected a gas column of up to 1,260 feet over six gas bearing sandstone units.

As per the estimates of Speedwell Energy, the Cotton field has recoverable gas resources of 97Bcf (16.7mmboe), while having the potential to produce at a peak rate of up to 70mmscf/d (12,000 boepd) from a couple of horizontal development wells.

A draft FDP has been prepared by Speedwell Energy for submission to the UK Oil & Gas Authority (OGA).

RockRose Energy to own Cotton gas field by acquiring Speedwell Energy. Photo courtesy of wasi1370 from Pixabay.

Richard T Strachan – CEO of Speedwell Energy 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.”

According to RockRose Energy, main contractors have been identified and that the company is having talks with them and the owners of the export infrastructure, expected to be used for the Cotton gas field development.

Before taking FID, the UK oil and gas company will undertake more studies to make sure that the subsurface delivery and also the project economics are strong, especially with the prevailing challenging gas price.

Andrew Austin – Executive Chairman of RockRose Energy, commenting on the acquisition of the Cotton gas field, 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. We look forward to carrying out further evaluation of the discovery prior to committing to FID.”