Two businesses sold
Oil tycoon’s First Oil Expro hit by slump
Jim Tucker, Blair Nimmo (pictured) and Richard Beard of KPMG were appointed joint administrators of First Oil Expro, a company within First Oil Group, on Friday.
The Group put the business up for sale at the end of last year in light of the difficult conditions in the sector.
Shortly after their appointment, a conditional sale was agreed with Zennor Petroleum Limited for Expro’s interest in a number of assets including two subsidiary companies, First Oil & Gas and Antrim Resources NI.
These two companies remain outside of administration and, once certain formalities have been completed over the next two weeks, will then be wholly owned by Zennor.
The conditional sale agreement provides for the transfer of the group’s interest in the following North Sea producing fields: Mungo & Monan, Bacchus, Cormorant East and Causeway; in addition to the undeveloped discoveries Glenn and Platypus. Prior to the appointment of the joint administrators, FOGL executed a sale in relation to its interest in the Kraken oil field to the other joint operating partners of the field. The joint administrators are in discussions to resolve the position on First Oil’s remaining assets.
Blair Nimmo, joint administrator and head of restructuring at KPMG in Scotland, said: “We are delighted to announce these two company sales today, which are 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.
“These sales will ensure that the group’s four largest field interests are smoothly transferred to new ownership, and provide time to resolve the position concerning the smaller assets in the Group’s portfolio.
“We would like to express our gratitude to management, employees, joint operating partners, regulators and other key stakeholders for their support during this challenging period for the Group. These sales are the culmination of many months’ work across that group maximising value for the Company’s stakeholders.”