RockRose Energy has agreed to acquire the non-operated gas and condensate producing assets of the Dyas group of companies in the Netherlands for €107m.
The Dyas group of companies is wholly owned by SHV Holdings N.V., a family-owned Dutch multinational.
The Acquisition, which has an effective date of 1st January 2018, will be funded from existing cash resources with no debt or equity issuance or shareholder approval required. There will be a significant working capital adjustment at completion.
The Acquisition adds a further 13 MMboe net developed reserves (with material undeveloped and prospective resource upside) and over 5,000 boepd of production to the Group. Post completion RockRose estimates combined Group 1P reserves of approximately 23 MMboe and 2018 pro-forma production in excess of 10,000 boepd.
The Group’s production will be circa 60% gas and 40% oil.
Both the existing asset base and those assets to be acquired have incremental opportunities which the Board believe could add significantly to the Group’s reserve base and maintain current production for at least the next five years, with Rockrose’s portion of the associated capex to be funded from the Group’s operating cash flow.
RockRose Energy executive chairman Andrew Austin said: “On completion this acquisition grows our North Sea business to a level of production that is over 10,000 boepd and in addition to providing significant free cash flow diversifies the portfolio and strengthens the Company’s position.
“Management sees significant upside in the combined portfolio and is confident RockRose can organically maintain or grow profitable production from these levels without necessitating additional funding.”
Dyas CEO Robert Baurdoux said: “After a presence of over 50 years in the Netherlands, the divestment of our Dutch entities is part of a strategic refocussing of our business.
“RockRose Energy is well placed to take-on the stewardship of the Dutch assets, allowing Dyas to pursue new investment opportunities in the UK, Norway, Denmark and Malaysia.”
Source: Company Press Release.