Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
Oil and Gas production and development company EnQuest PLC (LON: ENQ) said on Monday that it has signed a share purchase agreement with Whalsay Energy Holdings Limited to purchase their 100% equity interest in the P1078 licence containing the Bentley heavy-oil discovery.
EnQuest shares are trading 2.38% higher at 16.36p following the announcement. So far in 2021, its share price has gained 44.7%.
The oil discovery is within 15 km of EnQuest’s Kraken and Bressay interests, with the company saying it offers “further long-term potential development opportunities and other synergies.”
EnQuest will acquire Whalsay’s subsidiary, Whalsay Energy Limited, which holds the licence as its only asset on a cash, liability and debt-free basis.
The London listed company will fund certain accrued costs and obligations of Whalsay Energy, expected to amount to less than $2 million. There are no other upfront considerations payable. EnQuest will make deferred payments to Whalsay based on future revenues generated, which are capped at $40 million.
At the time of its last audit at the end of 2019, Whalsay Energy had gross assets valued at around $95 million, consisting of intangible assets representing historic capitalised exploration and evaluation activities on the Bentley licence.
For the year ended 31 December 2019, Whalsay Energy recorded a loss before tax of around $72 million due to the recognition of an impairment charge against the Bentley licence.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .