Palace coup for Revus
Offshore staff
STAVANGER, Norway --Revus Energy is set to acquire Palace Exploration Co. (UK) for $258 million.
The transaction, which has to be approved by the UK government, would increase the Norwegian independent's current production by around 160%. It would also bring Revus total reserves and contingent resources of 23.7 MMbbl of oil.
Palace's main UK asset is 29% of the Broom field in the northern North Sea, operated by Lundin Petroleum. It also owns 29% of the SW Heather discovery; 50% of Lundin's recent 10 MMbbl Scolty Palaeocene oil find; and interests in 28 blocks spread across 14 exploration licenses.
Broom is a subsea tieback to the Heather platform, and Southwest Heather – discovered in 1979 – could follow in 2011, if an appraisal well next year is successful. Palace is also partnering Lundin currently in a well on the Ridgewood prospect in block 12/17.
Revus would fund the transaction in large part via a $150-million debt facility agreed with Royal Bank of Scotland. It would transfer management of the assets to its headquarters in Stavanger.
12/11/2007