Page 13 - EurOil Week 27

EurOil INVESTMENT EurOil

Commodities trader acquires North

Sea’s Rockrose for $310mn

UK A subsidiary of international commodities netting it around 20,000 barrels of oil equivalent
trader Viaro has launched a GBP247.6mn per day (boepd) of oil and gas output. Its focus
The move marks Viaro’s ($310mn) takeover bid for North Sea-focused has been on increasing the decommissioning
first foray into the North oil producer RockRose Energy, the latter half-life of its assets and also extending the life of
Sea. announced in a statement on July 6. key infrastructure.
Viaro Energy has offered RockRose’s share- Viaro said that as the move represents its first
holders £18.50 per share, representing 64% pre- acquisition in the UK North Sea, it will “seek
mium to the company’s closing price in London continuity through maintaining RockRose’s
on July 3, and a 91% premium to the average existing business plan.”
closing price over the last three months. Direc- “Given the wider Viaro Energy group’s exten-
tors and senior managers controlling a third of sive knowledge in the commodities marketing
RockRose’s stock, and other investors with 2% and trading sectors, it expects to leverage its
of the company, have advised shareholders to expertise to complement management,” Viaro
accept the offer, which they describe as “fair and said.
reasonable.” RockRose will serve as an “ideal platform”
“After careful reflection, the board of Rock- for further North Sea expansion, Viaro said,
Rose has concluded that accepting this offer is adding that it did not envisage any staff cuts at
firmly in the best interests of our shareholders,” the company.
RockRose’s executive chairman Andrew Aus- RockRose has reduced its guidance for capital
tin explained in a statement. “It has been an expenditure this year by 40% in response to the
exciting journey since RockRose was founded collapse in oil prices. But it still has a lot on its
five years ago. However, for the benefit of all plate. It expects to participate in the drilling of
stakeholders, now is the time to move on and up to seven wells, including two infills at West
allow RockRose to continue to flourish with Brau, four development boreholes at the Arran
new backers.” field coming on stream next year and two more
RockRose has interests in a number of fields infills at the Blake field, whose production life is
in the UK and Dutch sections of the North Sea, being extended. ™

Premier scraps deal for 25% of Tolmount

UK LONDON-LISTED Premier Oil has dropped Capital Management (ARCM), over concerns
plans to take an extra 25% stake in the Tolmount about the North Sea producer’s high level of
Premier in January said gas field in the UK North Sea from South Korea’s debt. ARCM dropped its opposition in early
it would buy Dana’s Dana Petroleum, but is pushing ahead with a June to the BP deal, however, after the UK
share for $191mn plus larger deal with BP. major agreed to lower the sales price by two
$55mn in contingent Premier in January said it would buy Dana’s thirds.
payments. share for $191mn plus $55mn in contingent In a statement on July 2, Premier said it was
payments, bringing its overall ownership of “pleased to announce” that the BP purchase
the project to 75%. Tolmount has already been had now been approved by creditors after the
cleared by Premier for development and is tar- improved terms were secured. But the deal is
geting 500bn cubic feet (14bn cubic metres) of still awaiting shareholder and other approvals,
gas. Production is slated to commence in the and can only be completed if Premier raises the
second quarter of 2021, some six months behind necessary capital. The company has said before
schedule because of the coronavirus (COVID- that it expects to close the purchase before Sep-
19) pandemic and low prices. tember 30.
Premier said last month it would not proceed The agreement with Dana was not as
with the deal “on the terms originally envis- fortunate.
aged.” This was after it renegotiated the $625mn “Premier notes today that it will not be pur-
acquisition of BP’s Andrew Area and Shearwater suing the purchase of the additional 25% interest
assets. in Tolmount from Dana Petroleum,” it said in a
Both transactions were blocked by Pre- statement. Dana is currently a 50% shareholder
mier’s largest creditor, Asia Research and in the project. ™

Week 27 09•July•2020 www. NEWSBASE .com P13