HALO to buy Tullow Dutch assets

Hague and London Oil (HALO) agreed to acquire assets in the Dutch North Sea from Tullow Netherlands.

Map of Tullow Netherlands assets, from Tullow.

The acquisition comprises of Tullow's entire portfolio of offshore exploration and production license on the Dutch Continental Shelf (DCS) within the northern area and joint development area in the western part of the DCS, which collectively generated total net production of 2900 boe/d in 2016.

HALO is also materially advanced in its discussions with Engie regarding the provision of structured finance for the transaction.

"We are fully focused on progressing this transaction to its successful completion despite its complexity and large scale in comparison to HALO's current operations,” says Andrew Cochran, chairman and interim chief executive of Hague and London Oil.” “This acquisition will be transformational for our business, giving us exposure to existing production and associated infrastructure, with access to significant upside."

In April 2017, Tullow signed a sales and purchase agreement (SPA) with HALO for the entire Netherlands portfolio of non-core gas assets, as part of Tullow’s ongoing strategy to focus on light oil in Africa and South America.

Production from the Netherlands in 2017 was forecast to be around 3500 bo/d, with associated capex of approximately US$10 million from the start of the year.

At year-end 2016, booked Netherlands’ Commercial Reserves and Contingent Resources were approximately 2 MMboe and 15 MMboe, respectively.