The firm behind a pioneering North Sea project to open up marginal fields saw losses narrow last year after switching its focus to marginal projects.
Enegi Oil posted a £1.281million loss for 2013, compared to a £1.45million loss the year before, as it prepares to submit a final development plan for the Fyne field.
Enegi, which cut its interest in Canada after farming out assets in Newfoundland to Black Spruce Exploration, said it was focusing now on its marginal fields project with partner ABTechnology.
The project, which used an unmanned buoy system to reduce costs on oil extraction and production for marginal fields, is set to be tested on Fyne after Enegi farmed into the Antrim-operated site last year.
With an increased focus on maximising oil from the North Sea driven by Sir Ian Wood’s review of the UKCS earlier this year, Enegi chief executive Alan Minty said the company was concentrating on increasing the range of its system across the region.
“Our belief is that ABTOG will create a new sector of the oil and gas upstream market in which stranded or marginal hydrocarbon accumulations, previously considered to have little or no value, will be subject to large increases in value because of the solutions that ABTOG provides,” said chief executive Alan Minty.
“We have expended considerable effort in laying the foundations for ABTOG’s development and the business model is generating a lot of interest and gaining considerable traction. The scale of the opportunity should not be underestimated but considerable work will be required to access it.
“That is not to say that we do not believe that western Newfoundland still provides a significant opportunity only that, in terms of our efforts and the potential returns for Enegi shareholders, we consider the marginal field initiative to offer greater potential.”
Enegi said it expects to produce first oil using the new system from the Fyne field by November 2016, if the proposals for the field are approved.
It has landed two licences in last year’s UKCS round which it believes are suitable for using the buoy system, and said it was looking at other potential marginal projects with partners.
The firm, which has appointed former BP geoscience vice president Mike Bowman to the board, said Alex Lamb had resigned as a director following a six year spell with the firm.
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