Press

Hague and London Oil purchases significant non-operated natural gas production assets in the Dutch North Sea from Tullow Netherlands

Posted by OilVoice Press - OilVoice

10-Apr-2017


PROPOSED REVERSE TAKEOVER

PROPOSED ACQUISITION OF TULLOW 101 NETHERLANDS B.V.

Conditional agreement to acquire producing assets in the Dutch North Sea

Hague and London Oil PLC is pleased to announce that it has agreed the conditional acquisition of significant non-operated natural gas production assets in the Dutch North Sea from Tullow Netherlands Holding Coöperatief B.A. based on an enterprise value of €4,752,675, the net effect of which is that the Seller shall receive an estimated amount of €9,752,429 on Completion and contingent payments of up to €20,000,000 payable between 1 January 2019 and 1 January 2021.  

HALO is to acquire the assets through the purchase by its wholly owned subsidiary, Hague and London Oil B.V. ("HALO B.V."), of the entire issued share capital of Tullow 101 Netherlands B.V. ("Tullow 101") (the "Acquisition"). 

Highlights

  • HALO B.V. will acquire Tullow 101 and its two subsidiaries, Tullow Exploration & Production B.V. and Tullow Exploration & Production Netherlands B.V. (the "Target Group").​​
  • The Acquisition comprises interests 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 (the Licences), which collectively generated total net production of 2,900 boepd in 2016. 
  • The Directors believe that the Acquisition represents a transformational step in the implementation of HALO's strategic repositioning towards lower risk, production opportunities in established hydrocarbon provinces with ample access to, and equity ownership of, infrastructure.​
  • The Licences benefit from stable field production and the Directors see potential for significant upside in proved undeveloped and probable reserves, and contingent resources.​
  •  HALO is currently engaged in discussions with potential finance providers to agree the terms of funding for the completion payment pursuant to the terms of the Acquisition, whilst minimising dilution to Shareholders. The Company will announce further details of its financing arrangements at the appropriate time and once any binding agreement is entered into and details of such arrangements shall be included in the Admission Document. 

Andrew Cochran, Chairman and Interim Chief Executive of Hague and London Oil plc, commented:

"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" 

Reverse takeover, General Meeting and Admission

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. A Competent Person's Report ("CPR") on the material assets and liabilities of the Enlarged Group is in the course of being finalised, and will be included in the Admission Document as required by the AIM Rules. The Admission Document and a notice of the General Meeting, at which the approval of HALO's shareholders to the Acquisition will be sought, will be sent to shareholders in due course following the finalisation of the CPR and binding financing agreements. The Admission Document will also be made available on the Company's website (http://www.haloil.co.uk/ ).

Stifel Nicolaus Europe Limited is acting as nominated advisor to the Company in connection with the Acquisition.

Restoration of trading on AIM following publication of Admission Document

Trading in the Company's Ordinary Shares on AIM has been temporarily suspended since 4 April 2017. On publication of the Admission Document, the Ordinary Shares will be re-admitted to trading on AIM.  

Capitalised terms used but not defined in the body of this Announcement shall have the meanings ascribed to them in the "Definitions" section at the end of this Announcement, unless the context otherwise requires.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Hague and London OilDutch North SeaTullow NetherlandsAcquisition

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 6 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 10 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice