Hague and London Oil (Halo) has agreed to buy Third Energy Offshore in a move that will beef up its southern North Sea portfolio.
The acquisition will give Halo stakes in a number of southern North Sea fields, including 45% of the Greater Pegasus Area and the high-impact Andromeda prospect.
For its part, Halo will exchange 19.25% of the post-completion share capital.
Operator Spirit Energy is currently preparing an initial field development plan for Pegasus, according to Halo.
Andromeda should be drilled in 2019.
Halo interim chief executive Andrew Cochran said: “The acquisition announced today demonstrates a continuation of that strategy for growth through lower risk projects in lower risk jurisdictions, through responsibly funding the company whilst maintaining a lower cost base.
“The portfolio of assets to be acquired through the acquisition of Third Energy Offshore has significant potential for production growth through sensible capital allocation given the group’s solid foundation of cash flow from the previous acquisition.
“The result would be a highly complementary and balanced portfolio focused on natural gas in the southern North Sea (SNS).
“Halo will have long-life production, development and exploration activities within the SNS basin straddling the UK and Netherlands.“
Third Energy Offshore, which is controlled by Cayman registered Third Energy holdings, also has onshore fields in Yorkshire.
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