Fairfield Cedrus Limited has signed a letter of intent with Iona Energy Company UK Limited for the sale of its 100% interest in block 3/8d, which contains the Staffa Oil Field. The transaction is subject to the signature and completion of a Sales and Purchase Agreement and to DECC approval.

Today’s announcement allows Fairfield to continue to focus on the aggressive development programme for its core assets. These include the Clipper South Development, where the jacket and topsides have recently been successfully installed; Dunlin where production is set to increase to 10,000 bopd in H1 2012; and Darwin where exploration/appraisal drilling is planned for next year. Today’s announcement also follows the successful farm down of the Crawford and Porter developments to EnQuest.

The Staffa Field is located in Block 3/8d in the UK North Sea and lies approximately 14 kilometres south-east of the producing Ninian Central platform.

Fairfield’s Chief Executive Officer, Chris Wright said, “We are delighted to have signed of a letter of intent with Iona Energy for the divestment of the Staffa Field. This is another important step towards monetising our non-core assets, and comes at an active time for Fairfield as we remain fully focused on creating further value from our balanced portfolio of production, development and appraisal assets. We look forward to updating further on our continuing operational progress.”

Tags: Fairfield Energy Ltd