Tellus Petroleum AS Acquires 15 % of the Gina Krog Unit from Total

Source: www.gulfoilandgas.com 11/7/2015, Location: Europe

Tellus Petroleum AS, a subsidiary of Sequa Petroleum N.V., is pleased to announce that the company has entered into an agreement with Total E&P Norge AS to purchase 30 % interests in PL 029 B, 14.78 % in PL 029 C and 21.8 % in PL 048, representing 15 % in the Gina Krog Unit on the Norwegian Continental Shelf (NCS). The Effective Date of the transaction is 1st January 2015 and the transaction is subject to normal consent by the Norwegian Authorities. The transaction is planned to be funded through a combination of debt and equity, with completion (closing) planned for the end of 2015 contemporaneously with the completion of the Wintershall portfolio transaction, as announced on 18th June 2015.

- The proven and probable (2P) reserves in the transaction is some 33 mill. boe net to Tellus as per the official Norwegian Petroleum Directorate (“NPD”) data. The field is operated by Statoil (58.7 %) and partners are Total (30 %), PGNiG (8 %) and Det norske (3.3 %). The production is expected to commence in mid-2017 ramping up to a plateau of some 10,000 boed net to Tellus. The Plan for Development and Operation (PDO) was approved in May 2013, estimated gross capex of Gina Krog is currently some NOK 32 billion with an estimated remaining capex from the Effective Date of ca NOK 25 billion.
- On completion, Tellus will pay circa NOK 1.4 billion pre-tax, reflecting the 2015 operator project cost for Total’s share. The seller will retain the tax balances related to the Gina Krog investments prior to the effective date. On this basis, the all-in costs until first production will be 11 USD/boe pre-tax for the Sequa Petroleum Group. On signing, Tellus made an advance payment to Total of NOK 50 million.

“This transaction is an excellent add-on to the E&P portfolio purchase agreement announced with Wintershall in June and provides us with an additional high quality oil and gas asset in a core North Sea area with a production start date between Ivar Aasen and Maria. Gina Krog field development is well advanced, with a strong partnership led by a by a highly reputable operator, Statoil. Once in production, the field will provide us with important cash flow that will allow us to further grow the company, both organically and through acquisitions. The deal delivers on Sequa’s and Tellus’ strategy of rapid growth through acquiring high quality and large stakes in fields that are in production or are being rapidly moved towards production. Tellus looks forward to co-operating with Statoil and the other partners”, says Fridtjof Jebsen, CEO of Tellus Petroleum.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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