Tailwind To Buy EOG UK

Tailwind Energy, a London-based E&P firm financially backed by oil trader Mercuria, said September 4 it has agreed with US firm EOG Resources to buy its UK business. 

Tailwind will thus acquire and operate 100% of the producing Conwy oil field, a 25% non-operated interest in the Columbus gas development project and other minor asset interests in the North Sea. EOG has been reported as focusing its efforts on its Texas shale oil plays; it reported 2Q 2018 net income of $696.7mn, up sharply from the year-ago quarter's  $23.1mn as it increased production (mostly oil) by 16%.

Columbus – near the Chrysoar-operated Lomond and Shell-operated Shearwater gas fields – has been appraised by four wells. Serica Energy operates it with a 50% interest, alongside Endeavour 25%. Serica submitted Columbus gas field's development plan in June 2018; the small field is not expected to start producing before 2Q 2021.

Three days earlier on September 1, Tailwind said it had completed the acquisition of interests in the 'Triton Cluster' from Shell and ExxonMobil, a deal first announced nine months previously. Upon completion of EOG transaction, Tailwind said it expects to produce in excess of 15,000 barrels of oil equivalent/day across its portfolio but has not disclosed the value of either transaction. It is supported by two main partners: Mercuria for finance, and Petrofac for operator and duty-holder capability. CEO Steve Edwards left a vice-president post at Cnooc-owned Nexen in 2016 to form Tailwind.

EOG UK acquisition by Tailwind (Map credit: Tailwind)