The blocks include the Crown discovery (Palaeocene Balmoral Sandstones) which consists of 2C contingent resources that range between 4 to 8 MMboe, subject to an independent 3rd party expert assessment and are located 12 km south-east of Marigold field, which together with the Sunflower field, was acquired by Anasuria Hibiscus UK in October 2018.
Anasuria Hibiscus UK holds 50% operated interest in Licence P198 blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, in addition to 50% joint‐operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields (collectively known as Anasuria Cluster), as well as 19.3% non‐operating interest in the P185 licence consisting of the Cook field.
Under further negotiations with the sellers post-execution of the earlier conditional non‐binding term sheet, the payment terms of the proposed acquisition of License P2366 would commence with a non‐refundable payment of USD 0.1 million to the sellers and a further USD 0.9 million upon completion of the agreement.
Subject to further milestones being achieved post-agreement completion, an additional sum of USD 3 million will be paid within 7 business days of the actual date of approval of the Marigold Field Development Plan (“FDP”) which includes the development of the Crown discovery as part of the overall Marigold development (“FDP Approval”), by the relevant UK regulatory authority, which is expected to be received by the end of 2020.
However, if FDP Approval is not achieved, or if the Marigold FDP submitted does not include the development of the Crown discovery, Anasuria Hibiscus may, at its discretion, proceed with the USD 3 million payment or transfer License P2366 back to the sellers at nominal consideration without any further payment obligation.
Also, up to USD 1 million will be paid through an overriding royalty scheme once the Crown discovery has commenced production. Given its proximity to Marigold, the contemplated development of Crown is based on a single well subsea tieback to the Marigold field.
The proposed consideration was arrived at on a similar basis to the consideration paid for the Marigold and Sunflower fields as they are seen as being accretive to the existing Marigold and Sunflower development.