Cornerstone farms out North Sea gas assets to unnamed buyer
Aberdeen-based Cornerstone Resources has signed a binding deal to farm out a stake in its Abbey gas discovery and the nearby Baker exploration prospect in the UK North Sea to an unnamed buyer, the company said on October 10.
In a statement, Cornerstone said it was bringing on board a partner with "significant experience to benefit both projects," adding it would receive consideration up front and at the final investment decision stages. Under the agreement, Cornerstone said it would be fully carried for the cost of the Abbey development and an exploration well targeting Baker.
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The farm-out should secure regulatory approval in the next few weeks, Cornerstone said.
Abbey holds 111bn ft3 of gas in proven and probable reserves, according to a competent persons report by ERC Equipoise, while Baker is assessed to hold 56bn ft3 in prospective resources. Cornerstone CEO Peter Young described the farm-in partnership as a "win-win" for both parties.
"While the priority for Cornerstone will remain the development of Abbey, our broader ambitions are unchanged," Young said. "We anticipate growing the portfolio both via new developments and potentially also by acquiring assets."