Tullow to transfer Dutch North Sea interests to HALO

Offshore staff

THE HAGUE, the Netherlands – Hague and London Oil (HALO) has conditionally agreed to buy a package of non-operated gas production interests in the Dutch North Sea from Tullow Netherlands.

Under the transaction, Tullow would receive around €9.75 million ($10.31 million) on completion and contingent payments of up to €20 million ($21.16 million) between Jan. 1, 2019 and Jan. 1, 2021.

The field interests are spread across 12 licenses in the Northern Area and others in the Joint Development Area on the western part of the Dutch continental shelf, which collectively generated net production last year of 2,900 boe/d.

According to HALO, the licenses benefit from stable field production and there is upside potential in proved undeveloped and probable reserves, and also contingent resources.

HALO is working with potential finance providers to agree on terms for funding the completion payment pursuant to the terms of the acquisition. The company adds that the remaining partners plan a series of investments on the assets during 2017-18, likely to be funded via cash flow generated from production.

Opex across the interests averaged around €25/boe ($26.45/boe) last year, and is set to come down to around €21/boe ($22.22/boe) this year.

Assets to be acquired:

04/10/2017