Neptune Energy has acquired a 38.75% equity interest from Spirit Energy in the Pegasus West gas discovery and surrounding acreage of P1724, P1727, P4257 and P2128 in the UK Southern North Sea.
Pegasus West, discovered in 2014 and currently operated by Spirit Energy, lies in block 43/13b and forms part of the Greater Pegasus Area (Pegasus, Andromeda and Browney).
Spirit said it would remain operator of the licence under the transaction, which is effective from 1 January 2021, until a final investment decision is approved.
Neptune will then become operator of the development through to first gas and into production.
Spirit and Neptune will work closely together on FEED studies during 2021 with the intention to reach a final investment decision within the next 12 months.
PEGASUS WEST
The Pegasus West well was drilled and discovered in 2014. Extensive well testing at the time demonstrated a minimum connected volume of 53BScf and a maximum flow rate of 100MMScf/d. Estimated total recoverable reserves are 83Bcf.
The Pegasus West Area aligns Neptune’s interests with its Cygnus gas facility (Neptune Energy holds 38.75% and Spirit Energy has 61.25%) enabling acceleration of the development of Pegasus West as a subsea tieback to the existing Cygnus field.