Neptune Energy Group (“Neptune”) announced today that it has entered into a Sale and Purchase Agreement to acquire certain development and exploration assets in the UK Central North Sea from Apache North Sea Limited (“ANSL”), a wholly owned subsidiary of Apache Corporation (“Apache”).
Neptune will acquire Apache’s 35% working interest in the Seagull development and a 50% working interest in the Isabella prospect; both operated by ANSL. The proposed transaction is subject to the customary regulatory approvals, with completion expected this year.
The transaction follows Neptune’s announcement in June to acquire VNG Norge’s portfolio of production, development and exploration assets on the Norwegian continental shelf, and demonstrates Neptune’s commitment to the UK Central North Sea.
- Acquisition provides Neptune with a low cost, near-term development in close proximity to existing infrastructure, as well as a material undrilled prospect both located in the Central North Sea
- The Seagull development will consist of a multi-well subsea tieback project to existing nearby facilities that will commence during 2019 with first production expected prior to Q1 2022
- The Isabella prospect is considered one of the largest undrilled exploration opportunities in the Central North Sea, with planned drilling operations also commencing during 2019
Jim House, Chief Executive Officer of Neptune Energy Group, said:
“In line with our strategy of expanding positions in key jurisdictions, Seagull and Isabella are both high quality opportunities which complement our existing assets within the broader North Sea theatre of operations. We are extremely pleased to announce our second acquisition since the completion of the ENGIE E&P transaction last February. The signing of the SPA with Apache, which follows the announcement in June of our agreement to acquire VNG Norge, underlines our determination to continue building a leading international independent E&P company.”