Neptune Energy acquires North Sea assets from Energean

Neptune Energy has entered into a conditional sale and purchase agreement with Energean Oil and Gas to acquire Edison E&P’s UK and Norwegian producing, development and exploration assets for an initial cash consideration of $250mn. The purchase is contingent on Energean completing its proposed acquisition of Edison E&P.

The portfolio will provide Neptune with an estimated 30mn boe of proven plus probable (2P) reserves and near-term production in core areas of the North Sea close to infrastructure. It includes:

• A 25% interest in the Glengorm gas condensate discovery in the UK’s Central North Sea, close to Neptune’s operated Seagull project. Glengorm is an additional contingent resource.
• A 15% stake in the Nova gas project in the Norwegian North Sea, which is being developed as a subsea tie-back to the Neptune-operated Gjøa field. Production is expected from 2021, with estimated net 2P reserves of more than 11mn boe.
• A 10% interest in the Dvalin gas project in the Norwegian North Sea, which is being developed as a subsea tie-back to Heidrun. First gas expected by the end of 2020. Net 2P reserves are estimated at more than 11mn boe.
• A 10.5% stake in the Scott, 15.7% in Telford, 68% in Tors, 80% in Wenlock and 3.1% in Markham fields, with a combined incremental non-operated production of 3,000 boe/d in 2019. Tors is strategically important to the Neptune-operated Cygnus field due to the shared export route.

Jim House, CEO of Neptune, says: ‘This is an important bolt-on acquisition that is in line with our strategy of consolidating our position in key areas with high quality and complementary assets. The assets are an excellent fit with our North Sea portfolio. Nova and Dvalin are expected to add 12,000 boe/d to our production base over the next two years and Glengorm adds significant potential for the longer term.’