EnQuest to buy Bentley discovery from Whalsay for up to $42m

EnQuest to buy Bentley discovery from Whalsay for up to $42m

EnQuest will buy Bentley, one of the North Sea's largest undeveloped discoveries, from Whalsay Energy in a deal worth up to $42million (£30m).

The North Sea operator will acquire a 100% stake in the field through a newly-signed share purchase agreement in the P1978 licence.

Bentley, once estimated to be able to produce up to 300million barrels using enhanced recovery techniques, lies within 10miles of the EnQuest Kraken field and its newly-acquired Bressay asset.

EnQuest is only paying less than $2million (£1.4m) in upfront costs for Bentley to fund “certain accrued costs and obligations” of Whalsay.

It will then make deferred payments based on future revenues generated by Bentley, capped at $40million.

Despite its prospectivity, Bentley has a history of being sold off at relatively low sums.

EnQuest highlighted that Whalsay faced impairment charges of £52.7 million ($69m) in 2019 related to the Bentley field, taking pre-tax losses to $95m for that year, the latest set of accounts available.

Whalsay said that the write-down was based on offers it received as part of a Covid-hit sale and farm-out process.

That comes after Whalsaty bought Bentley and the shares of Aberdeen-based Xcite Energy, who was in financial strife, for just $1 in 2017

Bentley, discovered in 1977 and located about