Under the terms of the sale and purchase agreement, RockRose Energy will acquire the satke in the blocks which contain the Arran field in the UK Central North Sea. Financial terms of the deal were undisclosed.
RockRose expects the acquisition to add a further 5.7 mmboe 2P Reserves, and 3,500 boepd of initial production post development of the Arran field.
Upon completion of the deal, RockRose will have 20.43% stake in the Arran field. The other partners in the project include Shell UK, Zennor North Sea and Dyas UK.
The deal, however, does not involve the operatorship of the field, which is located in the East Central Graben.
The Arran field, which is an undeveloped gas condensate discovery, is planned to be developed as a subsea tie-back to the Shell operated Shearwater platform.
RockRose executive chairman Andrew Austin said: “This is an exciting addition to RockRose’s portfolio providing a near-term development opportunity which adds significantly to the Group’s reserves and future production.
“This once again demonstrates the Group’s ability to quickly access, progress and execute transactions providing an invaluable first mover advantage when seeking highly value accretive transactions.”
The partners are planning to file the field development plan (FDP) with the UK Oil and Gas Authority by end of September 2018.
Earlier this year, RockRose Energy agreed to acquire the non-operated gas and condensate producing assets of the Dyas group of companies in the Netherlands for €107m.
The Dyas group of companies is wholly owned by SHV Holdings.
Austin said: “On completion this acquisition grows our North Sea business to a level of production that is over 10,000 boepd and in addition to providing significant free cash flow diversifies the portfolio and strengthens the Company’s position.”
The acquisition of Dyas is expected to add a further 13 MMboe net developed reserves to RockRose.
