Hague and London Oil (HALO) this morning confirmed its bid to takeover Tullow Oil’s North Sea assets in the Dutch North Sea.
The deal includes an initial payment of €9.7million followed by payments of up to €20,000,000 payable between 1 January 2019 and 1 January 2021.
HALO will acquire Tullow 101 and its two subsidiaries, Tullow Exploration & Production B.V. and Tullow Exploration & Production Netherlands B.V. as part of the deal.
HALO chairman Andrew Cochran said: “Since the combination with Wessex Exploration in 2014, we have been on a slow but steady, measured, path to transform the Company into a lower-risk, successful E&P player.
“The prolonged market downturn has hit our sector very hard and has certainly impacted our efforts to diversify and grow the portfolio sooner. We have therefore been focused, disciplined and persistent in our implementation of the announced strategy, and today’s proposed acquisition is the culmination of the Company’s dedication to deliver within the stated objectives and a cost-effective manner.
“These are high-quality, cash generative assets with significant upside potential, in a mature basin with existing infrastructure and commercialisation routes – which have been the critical factors in our screening process and are also likely to be key in agreeing the funding of the Acquisition. We are looking forward to integrating this portfolio into HALO to continue on the future growth trajectory. This will fully complete the corporate transition to what we had longed planned for the Company”
The assets comprises of innterests in a suite of offshore exploration and production licences on the Dutch Continental Shelf (DCS) within the Northern Area and Joint Development Area (“JDA”) in the western part of the DCS, which collectively generated total net production of 2,900 boepd in 2016.
Given the scale of the Acquisition when compared to the existing group, the acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules and requires the company to issue a new admission document and is conditional, inter alia, on the approval of the acquisition by shareholders.
The company is in the process of preparing an admission document relating to the acquisition and readmission to trading on AIM of the enlarged group (the Admission Document) and is aiming to publish the Admission Document by 1 August 2017.
Restoration of trading on AIM following publication of Admission Document.
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