London—Dentons has advised longstanding client Hurricane Energy plc, the oil exploration and production company focused on fractured basement reservoirs, on the farm-out of 50 per cent of its interests in the Lincoln and Warwick assets (collectively known as the Greater Warwick Area) to Spirit Energy Limited. Spirit Energy is an independent exploration and production operator which was formed by the combination of Centrica plc's E&P business and Bayerngas Norge AS.

Under the terms of the farm-out, Spirit Energy has committed up to US$387 million, by way of carry, to fund a work programme to explore, appraise, and develop the Greater Warwick Area, approximately 100 kilometres west of Shetland. The work programme, which includes a campaign to drill up to six wells, is comprised of up to five phases which aim to accelerate first production and reserve allocation, whilst providing a fast-track to full field development sanction.

The Dentons team was led by Energy partners Danielle Beggs and Christopher Thomson and Corporate partner Darren Acres, who all worked closely with Hurricane's General Counsel Daniel Jankes on the deal. The Dentons team also included associates Torquil Law, Michael Walton, Liam O'Flynn and Wei Wu.

Hurricane Energy was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs. The company’s acreage is concentrated on the Rona Ridge, in the West of Shetland region of the UK continental shelf. The Lancaster field is Hurricane's most appraised asset and it is currently proceeding towards the first phase of development of Lancaster, an Early Production System which will be the UK’s first basement field development.

Dentons advised Hurricane Energy on its AIM listing in 2014 and on a number of transactions since then, including last year advising Hurricane on its US$520 million equity and convertible bond fundraise to fund the Lancaster EPS, one of the largest AIM fundraises by an E&P company to date.

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