U.K.-based oil and gas company Viaro Energy has unveiled plans to acquire Deltic Energy in an effort to strengthen its North Sea portfolio, while setting Selene discovery as development priority.
The acquisition has been structured as a recommended all-cash offer by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 .
The acquisition values the entire issued and to be issued share capital of Deltic at approximately $9.46 million (£6.9 million) on a fully diluted basis, the company said.
Deltic’s licence interests present a highly complementary fit with Viaro’s existing portfolio, offering near-term development potential and enhancing the Group’s long-term resource base.
In particular, Viaro will prioritise the development of the Selene discovery – one of the largest gas fields in the UK Southern North Sea in the past decade.
Viaro intends to leverage its operational expertise and financial capability to advance the development of Selene, reaffirming its strategic focus on unlocking critical domestic energy resources and supporting the UK’s energy security.
According to Viaro, it also plans to progress the nearby Blackadder exploration prospect, which is geologically analogous to Selene and well-positioned near existing Viaro infrastructure. If successful, Blackadder has the potential to add to near-term production and extend the life of surrounding host facilities.
“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, which forms an important component of Viaro’s recently announced transaction with Shell and ExxonMobil, as well as within the broader basin context.
“The transaction reflects our commitment to advancing key developments responsibly and with the continuity they require. 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,” said Francesco Mazzagatti, Viaro Energy’s CEO.
“Despite the difficult political and fiscal backdrop impacting the UK E&P industry over a number of years, the achievements of the Deltic team and the quality of our assets have been recognized by Viaro.
“This transaction provides certainty for shareholders as well as our staff, regulators and JV partners who are progressing the Selene opportunity towards development for the benefit of the UK. We are looking forward to working with the wider Viaro team as we continue to move the Selene and Blackadder opportunities towards production and applying our proven exploration expertise to Viaro’s existing and expanding portfolio of Southern North Sea licences,” added Andrew Nunn, CEO of Deltic Energy.