BritENERGY acquires oil and gas wells in the Permian Basin, USA, for $50 million

en.Wedoany.com Reported - British energy company BritENERGY Group has announced the acquisition of controlling interests in 13 oil and gas wells across 3,000 acres in the Permian Basin, New Mexico, USA, continuing to expand its upstream portfolio in the United States. The company has also criticized the investment environment in its home country.

The acquired assets are located near Hobbs in Lea County and include 5 producing wells, 2 of which are new horizontal wells. BritENERGY aims to produce a cumulative 5 million barrels (5 MMbbl) of oil from the block by 2032, with the development project expected to generate approximately $200 million in profit.

The total investment in the wells and associated production facilities is approximately $50 million. BritENERGY also plans to build a 300-megawatt solar facility at the site.

The company's investment comes amid growing criticism from UK oil and gas companies over the country's energy policy. BP recently announced plans to sell its long-held upstream business in the UK North Sea, while Jim Johnson, CEO of Hunting, described the UK as "uninvestable."

"The UK has enormous advantages in engineering expertise and access to capital, but the country's hostility toward investment is such that it is heading toward 'energy zero' faster than 'net zero,'" said Garry Mahoney, Chairman of BritENERGY.

Mahoney compared the UK's investment environment with opportunities in the United States and Morocco, where BritENERGY is negotiating a gas production agreement. "The US and Morocco are open for business for energy companies," Mahoney said, arguing that the energy policies of both countries provide a more attractive environment for investment, while criticizing UK policy for failing to deliver affordable and secure domestic energy.

BritENERGY's investment in New Mexico is the latest step in its shift of operations beyond the UK and gives the company a foothold in one of the world's most prolific oil-producing regions. The acquired US operations have been audited by Deloitte, with Brodies LLP providing transaction advisory services to BritENERGY.