Elf Exploration UK PLC, a subsidiary of Elf Aquitaine, has signed an agreement in principle with Talisman Energy (UK) for the purshase of Elf Exploration’s equity interest in its Fourth Round Asset (the Piper, Claymore, Saltire, Scapa and Chanter Fields, together with the associated pipeline network and the Flotta Oil Terminal).

The Offer and Acceptance signed with Talisman will be expanded into a fully termed Agreement. This will now be presented to the Fourth Round Joint-Venture Partners (Texaco, LASMO, Arco and Intrepid).

Talisman have expressed their wish to operate the Fourth Round Assets. Whilst Elf Exploration supports this proposal, the final decision rests with the Fourth Round Partners, subject to the approval of the Department of Trade and Industry (DTI) and the Health & Safety Executive (HSE).

The planned timetable to progress this agreement will be carried out between october 1999 and march 2000.