ENEGI Oil saw its share price dive 12% after it outlined plans to add further assets to its portfolio but confirmed the focus will be on marginal fields with low-risk profiles and costs.
The company believes it can reduce the cost of developing oil and gas fields using unmanning buoys.
In July this year, Enegi and partner ABT Technology signed their first development deal in the North Sea by agreeing to acquire a 50% stake in the 10 million barrel Fyne field off the east of Scotland from Antrim Energy.
Scottish oil and gas veteran Alan Minty, executive chairman of Enegi, hailed a "transformational few months" for the business.
He said: "We will continue to build a diverse portfolio assets, but with a strong emphasis on acquiring interests in marginal fields.
"These assets are low risk and highly-appraised and, consequently, our entry cost will be low.
"We will look to develop these assets utilising ABT's buoy technology, an appropriate solution which changes the development economics, enabling the early booking of reserves and further development projects."
As well as the Fyne field Enegi, which has offices in Manchester and Aberdeen, has two further licences in the UK Continental Shelf on which it hopes to use ABT's buoy technology.
Enegi said its joint venture with ABT, called ABT Oil & Gas, is in discussions with a number of operators and has identified a number of "strong" potential targets where there is no licence holder.Mr Minty said: "Negotiations are continuing."
Enegi also has assets in Newfoundland, Canada, the Clare Basin in County Clare, Ireland, and Jordan.
Shares in Enegi closed down 1p at 7.62p.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article