Cornerstone bringing in partner for North Sea assets

Cornerstone Resources Group, a gas development company, has signed a binding farm-out agreement for its Abbey development and also the nearby Baker low-risk exploration prospect located in the UK North Sea.

Announcing the agreement, Cornerstone said on Monday it will receive consideration up front and at Final Investment Decision. After the respective Final Investment Decisions, the company will be fully carried through the Abbey development and Baker exploration well.

The farm-out is subject to regulatory approval which is anticipated in the next few weeks. The company has not revealed the name of the incoming partner.

Block 47/3i (licence P2582) contains the main part of the Abbey gas discovery and part of the adjacent Carnaby prospect, the balance of Abbey and Carnaby being in P2433.

On 22 June 2022, the company received a letter of no objection from NSTA on its Concept Select Report and on 26 September 2022, the company submitted the draft Field Development Plan to the NSTA and other relevant regulatory bodies.

On 18 April 2022, the company received a Competent Persons Report from ERC Equipoise showing prospective resources of 56 Bcf on Baker.

Peter Young, Chief Executive Officer of Cornerstone Resources Group commented: “We are delighted to be bringing in a very high quality and credible partner on both Abbey and Baker. Our teams are already working very closely together and the deep experience of our team is being enhanced by our new partner’s significant experience to the benefit of both projects. This is truly a win-win deal for both parties and we are all excited about developing this partnership further.”

Young added: “Whilst the priority for Cornerstone will remain the development of Abbey our broader ambitions are unchanged. We anticipate growing the portfolio both via new developments and potentially also by acquiring producing assets.”