Cornerstone Resources has farmed out a pair of North Sea exploration assets to an unnamed buyer.
The firm has kept tight-lipped on details of the deal for its Abbey and nearby Baker assets in the Southern North Sea.
Cornerstone said the new partner has “significant experience to benefit both projects” and that the company will receive consideration up front and at final investment decision stages.
Under the deal, Cornerstone said it will be fully carried for the cost of the Abbey development and Baker exploration well.
Abbey has audited proven and probable reserves of 111 billion standard cubic feet (bscf) of sales gas and 0.6 million barrels (MMbbl) of condensate.
‘Win-win’
Development is “premised” on minimising carbon footprint, it added, meaning Cornerstone will “broaden understanding” of renewable energy.
CEO Peter Young said: “We are delighted to be bringing in a very high quality and credible partner on both Abbey and Baker. Our teams are already working very closely together and the deep experience of our team is being enhanced by our new partner’s significant experience to the benefit of both projects. This is truly a win win deal for both parties and we are all excited about developing this partnership further.”
The ownership structure of the assets – and who now becomes operator – is not clear, but Mr Young said his company’s ambitions are not changed.
Mr Young, who founded fellow north Sea operator IOG, launched Cornerstone in 2017.
Also on the board is Iain McKendrick, former CEO of Ithaca Energy.
Mr Young added: “Whilst the priority for Cornerstone will remain the development of Abbey our broader ambitions are unchanged. We anticipate growing the portfolio both via new developments and potentially also by acquiring producing assets.
“All our development work is premised on minimising and reducing our environmental footprint and that is a core attribute of Cornerstone. It is inevitable that as we grow our portfolio we will continue to broaden our understanding of renewable energy sources and look to invest in such sources that are complementary to our core business.”
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