August 23, 2021
Summit is pleased to announce the signing of a Sale and Purchase Agreement with Ping Petroleum for the sale of Summit’s 50% interest in licence P.2006 in the UKCS. Summit was awarded the licence 100% in 2012, developed the prospectivity ideas as operator, and drilled successful discovery and appraisal wells as operator in 2014 and 2017 respectively. Following transfer of operatorship to Ping Petroleum in 2018, plans were set back by cancellation of an appraisal well planned for 2019, and following a strategic shift by Sumitomo Corporation, investment in oil development projects such as Avalon were considered non-core. The deal structure allows Ping Petroleum to progress with the development in a timely fashion while Summit will benefit from future contingent payments as the project progresses through FID and into production.
Summit CEO John Austin commented:
“Summit is proud of its subsurface and operational skills deployed in discovering and appraising Avalon as Operator, and in being a very active and involved partner to Ping over the last 3 years. Our focus is now shifting away from investment in oil and, while we look forward to Ping’s success in bringing Avalon onstream, our focus is now to seek future investments in low carbon energy in the rapidly developing business opportunities available in UK.”