Endeavour Surges After North Sea Asset Purchase: Dallas Mover
Endeavour surged to $9.99 at the close in New York. The Houston-based oil and natural-gas company completed the purchase of a 23.43 percent working interest in Alba from ConocoPhillips (COP) today. The acquisition brings its total stake to 25.68 percent, Endeavor said in a statement.
The Alba stake is part of Endeavour’s $330 million purchase of three U.K. oilfield stakes from ConocoPhillips announced on Dec. 27. The company plans to close on the two other fields as soon as possible, Chairman and Chief Executive Officer Bill Transier said in a phone interview today. Alba made up about 70 percent of the total purchase, he said.
Endeavour said May 2 that completing the Alba transfer was delayed as it discussed future decommissioning costs with the project’s partners. At the time, the company said it may not have the cash or be able to finance certain repayments required if the transaction didn’t close.
Alba produced 25,000 barrels a day last year, according to Chevron Corp. (CVX)’s website. Chevron owns 23.4 percent and operates the field, which began producing oil in 1994. Total SA and Statoil ASA also owns stakes in the field, according to their websites.
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