ONE-Dyas part of Nova developmentNova area. Source NPD

ONE-Dyas part of Nova development

Following the news on the dry Godalen well drilled by Capricorn Norge, the parent company Cairn Energy announced the farm-out of its 10% non-operating interest in the Nova field development offshore Norway.

The new owner of the 10% Nova (formerly known as Skarfjell) interest is ONE-Dyas Norge AS, according to Cairn Energy. The stakes have been sold as a farm-out agreement for almost £50 million.

The Scottish oil and gas firm will retain a participating interest of 10% in the Nova development and reduce its capital expenditure by £90m in the project to the end of 2021. Nova is expected to deliver peak production of 50,000 bopd (10,000 bopd net to Cairn) with first oil targeted in 2021. The reservoir at Nova is the upper Jurassic Heather Fm with good reservoir quality.

Cairn will use the proceeds of the transaction to fund group exploration and development activities in operating blocks along the Atlantic Margin or UK/Norway.

As a result of the transaction, subject to approvals by the Norwegian authorities, the licenses configuration will be as follows:

Licences PL418/PL418B: Wintershall DEA (Operator) 45%, Spirit Energy 20%, Edison 15%, Cairn 10%, ONE-Dyas 10%