The joint administrators have executed a conditional sale agreement with Zennor Petroleum Ltd for the sale of Expro’s interest in a number of assets including two subsidiary companies, First Oil and Gas Ltd (FOGL) and Antrim Resources NI Ltd (ARNIL). These two companies remain outside of administration and, once certain formalities have been completed over the next two weeks, will then be wholly owned by Zennor.

The conditional sale agreement provides for the transfer of the group’s interest in the following North Sea producing fields: Mungo & Monan, Bacchus, Cormorant East and Causeway; in addition to the undeveloped discoveries Glenn and Platypus. Prior to the appointment of the joint administrators, FOGL executed a sale in relation to its interest in the Kraken oil field to the other joint operating partners of the field.

The joint administrators are in discussions to resolve the position on First Oil’s remaining assets.

Jim Tucker, joint administrator and restructuring partner at KPMG, said: ‘We are delighted to announce these two company sales today, which are an excellent outcome for stakeholders. The fact that their owner, First Oil Expro Ltd, sold them via an administration process is a reflection of the significant challenges facing UK North Sea oil and gas companies in the current oil price environment.

‘These sales will ensure that the group’s four largest field interests are smoothly transferred to new ownership, and provide time to resolve the position concerning the smaller assets in the group’s portfolio.’