25th Feb 2019 14:02
LONDON (Alliance News) - Oil & gas company RockRose Energy PLC said Monday it has signed an agreement to acquire all the UK oil assets of Marathon Oil Corp for USD140 million.
UK-listed RockRose has a share purchase agreement to acquire Marathon Oil UK LLC and Marathon Oil West of Shetland Ltd from subsidiaries of Marathon Oil, a US-based exploration company. The deal consideration will be funded by RockRose through its existing resources and facilities.
Under the acquisition, RockRose will buy 37% to 40% operated interests in fields in the Greater Brae Area, a 28% interest in the BP PLC operated Foinaven Field unit and a 47% interest in Foinaven East. The acquisition also includes interests in the SAGE, Brae-Forties and WASPS infrastructure, providing additional tariff income.
The acquisition is anticipated to add 13,000 barrels of oil equivalent per day production in 2019, taking RockRose's total net anticipated production for 2019 to around 24,000 boepd. It will have net proved & probable reserves after the deal is completed of 70 million barrel of oil equivalent.
RockRose is acquiring the Marathon Oil UK assets via a reverse takeover and, as a result, shares in the company have been suspended from trading in London pending publication of a prospectus,
"This acquisition marks a major step change in the group's reserves and production profile. Given the quality of these assets the board's view is this is a good opportunity to make the transition to the role of operator," RockRose Executive Chair Andrew Austin said.
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