LONDON: Hague and London Oil plc (HALO), has announce the proposed acquisition of several assets in the Dutch & United Kingdom (UK) sectors of the North Sea from ONE-Dyas BV (OND).
Hague and London is the oil and gas company with a diverse portfolio of production, development, appraisal, exploration and infrastructure assets primarily focused on the Southern North Sea.
These interests consist of 7.9% of the Sillimanite Development Unit, straddling the Dutch & UK median line in the North Sea; 0.85% of the Joint Development Area (JDA); 2.34% of the Western Gas Transmission (WGT) pipeline system, including the onshore Den Helder gas processing facilities; and, 4.167% net profit interests (NPl) on blocks in and adjacent to the JDA, from OND.
Hague and London would pay a purchase price to OND of €8.85 million paid in cash at the closing of the Sales Purchase Agreement (SPA), subject to working capital adjustments between the Effective Date and closing of the SPA.
The completion amount will be funded through existing cash resources of the Company, structured finance associated with the existing and expanded portfolio or secured lending against hydrocarbon gas volumes within Hague and London Oil’ss portfolio. The proposed acquisition shall be subject to all requisite third party, regulatory and government approvals or waivers.
The effective date of the proposed transaction shall be 1st of January 2019 with the completion amount paid at the time of closing. The proposed acquisition will increase Hague and London’s interests in the JDA and WGT to 10.80% and 11.22% respectively and a new entry with 7.9% of the Sillimanite Development Unit comprised of 11.73% Block 44/19a (UK (includes the Sillimanite West Discovery)) and 7.037% Block D12b (Netherlands).
Andrew Cochran, Chairman & Interim CEO, commented: “This proposed acquisition represents a unique opportunity to add to the existing portfolio as well as expanding it within HALO’s established ‘core’ areas, including transportation & infrastructure. Sillimanite is already under development and would add materially to the Company’s production profile next year as well as adding reserves immediately upon a successful closing; also, the proposed acquisition would establish HALO’s first production in the UK ahead of the Greater Pegasus Area development project.”