Independent oil and gas company Enegi has announced that it has reached an agreement to potentially farm out part of block 22/12b in the UK North Sea to Azimuth, a group with which Enegi has an existing relationship.

The block, which is currently 100% owned by Enegi and ABTechnology, contains the Phoenix discovery and a number of potential exploration opportunities.

Under the agreement, Azimuth will earn a 50% interest in the exploration area in exchange for the completion of an agreed work programme that includes certain geological, geophysical and reservoir analysis utilising existing seismic and well data in respect of both the phoenix area and the exploration area.

This will be done within the first 12 months of signing the agreement.

Alan Minty, Chief Executive Officer of Enegi, said: "This is the second farm-out agreement that we have completed with Azimuth and we are delighted to be working with them and have access to their extensive exploration expertise on both our North Sea assets.

"Both deals are completely in line with our strategy of de-risking our portfolio, whilst maintaining a significant interest in work programmes which we believe have the ability to deliver value to the company for a minimal capital outlay. These are very exciting times for Enegi as we progress our projects across our entire portfolio."

Enegi and ABTechnology will retain a 100% working interest in the Phoenix Area.

The share price rose 4.21% to 12.38p by 09:30.

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