HitecVision merged three oil companies into Point Resources, a robust mid-sized independent oil company focused on the Norwegian Continental Shelf (NCS). The new company will engage in both exploration, development and production on the NCS.
Point Resources will be created by consolidating Pure E&P (previously Rocksource), Spike Exploration, and Core Energy. All three companies are owned by private equity funds managed by HitecVision, and the funds will jointly invest US$393.3 million (NOK 3.5 billion) in further growth capital.
The companies are comparable in size, with a combined work force of 77 employees. Core and Pure have offices in Oslo, and Spike is located in Stavanger; Point Resources will maintain offices in both cities.
The company will have ownership in 57 licenses on the NCS. From its inception, the company will have an oil and gas production of about 10,000 b/d, mainly from the Brage, Snore, Hyme and Bøyla fields. The company will also have ownership interest in several discoveries that are expected to be developed within the next couple of years, such as Pil (45%), Garantiana (30%), and Snilehorn (17.5%). Point Resources will be the largest owner in Pil, and will be capitalized to participate with its share of the upcoming field development.
The CEO of Point Resources will be Roar Tessem, currently CEO of Pure E&P. Tessem is an experienced industry professional, having previously held the role as CEO of Spring Energy, country manager for Tullow Norge and various positions in DNO and PGS.
“I look forward to lead Point Resources,” said Tessem. “The experience and track record of the combined organizations and their individual achievements; the exciting opportunities in the portfolio of fields, discoveries and exploration licenses; the opportunities in the current market; all this combined with a strong financial position creates an ideal basis for the years to come.”
The merger of the three companies into Point Resources is expected to close during H1 2016, subject to final approval from Norwegian authorities.
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