UK-based independent oil and gas company RockRose Energy has completed the acquisition of Marathon Oil UK (MOUK) and 100% of Marathon Oil West of Shetland (MOWOS) from subsidiaries of Marathon Oil.
RockRose is expected to pay the $95m (£71m) to Marathon Oil for the acquisition, through funding from existing resources and facilities.
The acquisition was originally announced in February 2019.
Details of MOUK and MOWOS acquisition
RockRose said that the MOUK holds 26.0% interests in licence P313 and 40.0% in licences P340 and P108, which together comprise the Greater Brae Area.
In addition, the MOWOS holds a 28.0% interest in the Foinaven field operated by BP, along with interests in the Foinaven East, T25, and T35 satellite accumulations.
The acquisition is also expected to provide additional tariff income, as it includes interests in the SAGE, Brae-Forties and WOSPS infrastructure.
The acquisition has added approximately 28.4mboe of 2P reserves for RockRose, increasing its total 2P reserves to 62.9mboe and 2P reserves plus 2C contingent resources of 87.6mboe.
RockRose, in a statement, said: “Production for the assets being acquired is circa 11,000 boepd in 2019 to date, taking RockRose’s total net production for 2019 to date to circa 22,000 boepd on a pro forma basis.”
Under the transaction, the MOUK and MOWOS assets and teams in Aberdeen, Peterhead and offshore have also transferred to RockRose.
In addition, the total cash on the balance sheet of the enlarged company following the acquisition is approximately $370m (£293), of which $91m (£72m) is restricted.
RockRose executive chairman Andrew Austin said: “I am delighted to confirm the completion of our Marathon acquisition. The quality of the assets and team materially strengthens Rockrose, with a significant uplift in our reserves and production and marks a significant step towards our strategic ambition of having operations of scale in the North Sea.
“I would like to welcome the Marathon Oil UK employees to RockRose. The team has an excellent track record and we look forward to continuing safe operations of the acquired assets. We remain focused on growing the value of RockRose, not only through the ongoing development of the enlarged portfolio, but also through value accretive acquisition opportunities in the future.”
