NEO Energy, the independent full-cycle North Sea operator in the UK Continental Shelf backed by HitecVision, has announced the completion of its acquisition of independent oil and gas company Zennor Petroleum Limited. The completion further solidifies NEO’s position among the largest oil and gas producers in the UKCS and delivers an asset portfolio with significant scope for organic growth. The experienced Zennor team will now join NEO, increasing overall headcount to over 180 staff.
This transaction, alongside the ongoing acquisition of a package of assets from ExxonMobil, will increase NEO’s production to circa 80,000 barrels of oil equivalent per day (boepd) in 2021 with further developments providing a stable production base in the period 2022 – 2026 of between 90,000 and 100,000 boepd.
The acquisition increases NEO’s portfolio of operated assets, providing greater control and capital allocation flexibility. The Zennor portfolio adds circa 40 mmboe of reserves and more than 90 mmboe of un-risked resource to NEO. NEO has taken ownership of a quality portfolio of assets centred around the strategic Britannia and ETAP production hubs, with organic near-term growth prospects from sanctioned projects. These include the operated Finlaggan tie-back, scheduled for first production later this year, and a series of future development opportunities including the operated Leverett and Greenwell projects (tie-backs to Britannia), and Murlach (tie-back to ETAP) where we will be looking to take FID next year.
Russ Alton, CEO of NEO Energy, said:
“We are delighted to announce the completion of this transaction and to welcome the Zennor team to NEO. Our combined teams are very excited by the opportunities this portfolio of assets brings to NEO, as we further expand our operated position providing us with greater control and flexibility to maximise value.
The completion of this deal is yet another demonstration of the scale of our ambition in the UKCS, as we seek to grow our production to approximately 120,000 boepd in 2023.
NEO has now firmly established its presence in the UKCS and is determined to lead the way for the sector through initiatives such as our recently published Low Carbon Transition Plan. We are focused on generating sustainable growth and maximising value from the UK’s offshore assets, whilst playing our part in reducing the carbon intensity of the sector.”