Published: 22nd February 2016
Administrators have been called in to manage the affairs of the North Sea energy exploration company First Oil Expro after a series of financial difficulties took their toll.
First Oil Expro is part of the larger First Oil Group and is based in Aberdeen, where many North Sea energy operators have been hit hard in recent quarters by the falling price of crude oil on international markets.
Several of the company’s most valuable assets are to be sold as part of the administration process, with deals in place to see its subsidiary operations First Oil & Gas and Antrim Resources transferred to new owners.
Zennor Petroleum, an oil and gas business based in Surrey, is set to acquire those two businesses with several of First Oil’s interests in various North Sea oil producing fields now also expected to be taken over by the English company.
Statements from Zennor have said that its planned purchases of First Oil’s assets represent an “important part of its plan to become a full cycle exploration and production company operating offshore”.
The company’s managing director Martin Rowe said: “We are pleased to have been able to work with the key stakeholders in First Oil, including the management and joint administrators, to execute this transaction.
“These agreements not only add material production volumes and reserves to Zennor, but also enable the company to continue focusing on the commercialisation of discovered resources.”
KMPG administrators appointed to the affairs of First Oil Expro described the sale of its two subsidiaries as representing “an excellent outcome for stakeholders”.
“The fact that their owner, First Oil Expro Limited, sold them via an administration process is a reflection of the significant challenges facing UK North Sea oil and gas companies in the current oil price environment,” noted Blair Nimmo, one of the appointed administrators.
First Oil was first established in 2001 and went on to become the largest private, UK-owned company involved in producing oil and gas in the British areas of the North Sea.
Prior to its entry into administration, First Oil Expro sold its interests in the Kraken oil field to the joint operating partners with which it had been working with in the area. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 78 UK offices or a place of your convenience.