Viaro Energy poised to acquire Deltic, sets focus on North Sea Selene gas development

RockRose Energy Ltd., a wholly owned subsidiary of Viaro Energy Ltd., has agreed to acquire North Sea independent Deltic Energy via a recommended all-cash offer.

Deltic brings prospective licenses in the North Sea, mainly in the gas-prospective southern sector, where Viaro also is strong following its recent transaction for Shell and ExxonMobil’s interests in this region.

Viaro said it would prioritize development of the Selene gas discovery, where Deltic was a partner (25%) to operator Shell UK.

Recently, Shell informed Deltic of an overspend on the Selene well drilled last year, which could mean added costs to Deltic of about £1.3 million ($1.79 million) that would likely be due prior to first revenues from a potential Selene development.

Viaro also plans to progress work on the nearby Blackadder exploration prospect, thought to be geologically analogous to Selene and close to Viaro-operated offshore infrastructure. If successful, Blackadder could extend the life of surrounding host facilities.

CEO Francesco Mazzagatti said, “Deltic’s portfolio represents a natural fit with Viaro’s existing assets and strategic focus in the North Sea. The Selene discovery is a key driver for this acquisition…

“By working with joint venture partners to overcome the economic challenges imposed by the current fiscal uncertainty, we aim to ensure that important developments like Selene can be successfully progressed towards production in a timely manner, and with the right level of technical and financial support.”