News Release (Sumitomo Corp.)
Aug. 07, 2012
Asset exchange for Kinnoull Field and Pierce Field
Summit Petroleum Limited ( Kevin Smith Chief Executive Officer, hereinafter SPL ) , a subsidiary of Sumitomo Corporation ( Kuniharu Nakamura President and Chief Executive Officer) , has completed transaction with JX Nippon Exploration and Production (U.K.) Limited ( Kemmei Nakata President and CEO, hereinafter JXUK ) a subsidiary of JX Nippon Oil & Gas Exploration Corporation ( Shigeo Hirai President and CEO) to exchange SPL's 6.27% interest in Kinnoull Field with JXUK's 3.75% interest in Pierce Field with difference in value of the fields adjusted by cash.
Kinnoull Field is located in the Central North Sea and SPL farmed into the discovery well drilled in May 2008. It received project sanction by DECC in July 2011 and is currently under development with first oil scheduled in 2013.
Pierce field is located in Central North Sea and commenced production in 1999. SPL is adding 3.75% to its existing interest of 3.73% making it approximately 7.48%. The field is currently producing steadily and there are plans for additional investment to increase production.
This transaction is realizing the value of asset where SPL has farmed in from exploration stage and consolidating our position into a stable producing field which will strengthen our business in UK North Sea.
<Summary of the transaction>
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