A&D marketing for the oil and gas industry

UK Onshore Portfolio

UK Onshore Portfolio

Onshore / Production and Renewables

Envoi has been commissioned to assist Evoterra Limited, a privately-held UK energy company, with the divestment of its traditional upstream and renewable wind assets onshore UK. These are held through two wholly-owned subsidiaries, comprising Terrain Energy Limited (‘Terrain’) and MicroEnergy Generation Services Limited (‘MicroEnergy’).

Terrain owns various non-operated interests onshore UK including producing oil fields in addition to development potential and exploration upside. The interests include four Licences in Lincolnshire in the East Midlands petroleum provinces comprising PEDL199 (5%) including production from the Whisby field, PEDL201 (12.5%), PEDL118 (27.78%) and PEDL203 (27.78%). The other two assets are located in the Weald Basin south of London comprising interests in PL235 (10%) including the Brockham field and PL241 (10%) including the Lidsey field. The acreage also offer potential for geothermal and unconventional resources.

Terrain’s 5% interest in the Whisby oil field in PEDL199 is their key asset as they are currently benefiting from an 85% share of the production from the Whisby-6 well as payment for funding this last development well drilled in 2016. Together with Whisby-4 (circa 50bopd) the field is producing 115 bopd from the basal Carboniferous sandstone, which is a primary reservoir in the area. Detailed reinterpretation of the existing 2D seismic and integrated well data over the field suggests there is sufficient undeveloped potential for at least two new development wells, which could increase the daily production to at least 250 bopd and help unlock around 500,000 bbls of remaining resources. Licences PEDL118 and PEDL203 contain the historical Kirklington and Eakring-Duke’s Wood oilfields from which production had declined to around 20 bopd before being shut in as part of ongoing studies to assess the most effective means of producing all the unswept oil from the reservoirs. The re-purposing of wells for geothermal use is also being assessed by the operator Egdon, which has signed an agreement with Creative Geothermal Solution Limited to assess this. Licences PL235 and PL241 in the Weald Basin contain the Brockham and Lidsey oil fields, which have recently produced up to 20 bopd each.  Studies as to how best to increase production and ultimate oil recovery from the Portland Sandstone in Brockham are currently in progress.

MicroEnergy’s renewable assets include 139 small wind turbines located across East Anglia. These comprise all British manufactured MCS class and NK accredited 5kW Evance R9000 turbines, which generate in all wind speeds. The electrical power they generate can be used by the landowners, with any excess exported to the grid, all priced by UK feed-in tariffs. The excess (deemed to be 50%) is currently sold to Ecotricity, which also is the manufacturer of the Evance turbines and whose subsidiary, Britwind, carries out the turbine operations and maintenance activities. The combined total estimated annual production for the turbine portfolio, based on the production over the last five years, is calculated to be 652,658 kWh p.a., with an average annual production of 4,695 kWh per system. Average annual revenue is around £235,000, with an EBITDA of around £154,000.

Following a pandemic enforced extension to their natural investment cycle, Evoterra’s shareholders are seeking cash offers for the UK assets as a complementary conventional upstream and renewables energy portfolio.