2010-08-31-2010-08-31

Bayerngas will also make a contribution to Fairfield's past costs.

Bayerngas UK Ltd., the U.K. oil and gas subsidiary of privately held, Oslo, Norway-based Bayerngas Norge AS, plans to acquire a 25% interest in the Clipper South project offshore the U.K. North Sea from Aberdeen, U.K.-based Fairfield Energy Plc in exchange for carrying certain development costs.

Bayerngas will also make a contribution to Fairfield's past costs. Fairfield will retain a 25% interest in Clipper South, which is operated by its partner RWE Dea SNS UK Ltd. with a 50% interest.

Clipper South Field development will involve drilling horizontal wells with multiple hydraulic fractures targeting the Rotliegendes formation. The current partnership has concluded an EPC contract with Heerema to construct a platform in the Netherlands, with planned delivery in July 2011. It is expected that gas will be exported from the platform via the Lincolnshire offshore gas-gathering system and then on to the Theddlethorpe terminal onshore.

RWE Dea estimates probably reserves of gas initially in place at 502 billion cubic feet.

The field development plan is planned for early 2012.

Fairfield chief executive Mark McAllister says, "We are very pleased to welcome Bayerngas to the Clipper South project, building on our established relationship. Clipper South is a sizeable tight gas resource and its development will add significantly to indigenous U.K. production, demonstrating that with the correct technical approach, such assets have an important role to play in shaping the future of the U.K. North Sea."