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Epi-V invests further GBP7m in Moorland gas assets

Upstream exploration and production company Moorland Energy has secured a further GBP7m investment from Epi-V, an investor in oil and gas services.

This follows the recent announcement that significant gas reserves were confirmed at Moorland’s Ebberston South well in North Yorkshire.
 
The deal will enable the business to fund the design, planning and engineering developments required to optimise gas production at the site and to prepare the well for future connection to the UK transmission system.
 
Moorland Energy is a vehicle created to acquire licences to extract hydrocarbons from surveyed and partially delineated discoveries.
 
Epi-V invested GBP10m in the business in November 2008 to finance appraisal drilling, well testing and reserve verification activities on two exploration licenses which it had acquired from Warwick Energy.
 
This funding enabled Moorland Energy to achieve its first strike at the 3D seismic defined extension to the Wykeham gas field at Ebberston South.
 
Epi-V’s second investment in Moorland will also be used to undertake further exploration work on the company’s PEDL 120 licence at the Wykeham gas field.
 
Former non-executive director of Moorland Energy Lawrie Erasmus (pictured) has been appointed chief executive. Erasmus has a broad base of experience in both the corporate finance and oil and gas sectors, previously heading up Viking Petroleum Group and founding Cato UK, a management consulting and corporate finance advisory firm.
 
Fergus Jenkins has been appointed chief engineer to lead the technical aspects of the next phase in the business’ development. He has over two decades of experience which spans reservoir senior technical and managerial roles at major wells across the globe.
 
Erasmus says: “Data indicates that the Ebberston South site contains significant quantities of gas, so the cash flow generated by this strike will enable the business to progressively target other development, appraisal and ultimately exploration opportunities. We’re currently examining a number of licences for accessible reserves across the UK which are promising but undervalued.
 
“In Epi-V we have a backer that is providing not only the financial muscle but also the industry guidance and engineering input which is playing a crucial role in the development of the business.”
 
John Hutchinson, partner at Epi-V and non-executive director of Moorland Energy, adds: “Moorland’s strategy is to develop low risk appraisal prospects such as Wykeham to ensure that, at completion, we can provide a valuable asset with a strong cash flow base to potential acquirers.
 
“Domestic hydrocarbon reserves will become increasingly important in meeting Europe’s energy requirements so exploration and production of undervalued assets will generate significant future value.
 
“With a forward-thinking management team and the funding and hands-on input from Epi-V, Moorland is well placed to become a significant player in the oil and gas exploration and production industry.”

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