The Press and Journal (Aberdeen and Aberdeenshire)
Energy Indicators
SIMMONS INDICATORS
The Brent oil price increased this month to $65.92 on April 21, representing a monthly increase of 2.2%. The WTI price also increased, to $62.67, a monthly increase of 4%. Oil prices have risen as a result of a weaker dollar and continued increase in demand within the US and China. However, price gains have been limited in view of a second “tsunami” wave of Covid-19 cases in India.
Shell and Deltic Energy, joint venture partners on License P2252, announced they have made a positive investment decision to proceed with drilling a high impact exploration well in the UK southern North Sea. The Pensacola prospect is expected to be drilled in May 2022, and is anticipated to be one of the highest impact exploration targets to be drilled in the gas basin in recent years.
Deltic said this will play a vital step in evaluating its highly-prospective Zechstein reef play, which has the potential to revitalise exploration in the southern North Sea.
Tailwind Energy announced it has acquired Decipher Energy, owner of several assets within the UK North Sea. It will allow Tailwind to continue deploying its strategy of exploiting organic production and near-term reserves growth while building out its portfolio. The acquisition also intensifies Tailwind’s work to bring online its Evelyn field in the North Sea, with the first well expected to be drilled in the second half of 2021.
BP has suspended production from its Foinaven fields off Shetland in order to commence preparations to remove its Petrojarl Foinaven FPSO vessel, which is said to be approaching the end of its 25-year life. The vessel has been referred to as an “icon of the North Sea”, having been on location in the Foinaven area since 1997. BP have stated that alternative options are being considered to recover estimates of up to 200m additional barrels of oil from the field.
SIMMONS NEWS
Simmons Energy, A Division of Piper Sandler, served as the exclusive financial adviser to Zi-Lift as the company announced it has been acquired by Schlumberger. Zilift is a high-technology electrical submersible pump manufacturer, using permanent magnetic motors to reduce the size of pump systems while offering more power than industry incumbent systems, headquartered in Aberdeen.
Simmons also served as exclusive financial adviser to Canyon Midstream Partners II as it announced it has sold RedCliff Midstream to Tall Oak Midstream II. Redcliff provides natural gas gathering, treating and processing services to producers in Oklahoma’s STACK play.
Its infrastructure system comprises more than 200 miles of gathering pipeline, a network of five field compression stations and a 240 MMcf/d cryogenic gas processing plant.