On 29th March 2017, Point Resources announced its
acquisition of ExxonMobil's operated upstream business in Norway for an
undisclosed amount (estimated valuation of c.USD1bn). The deal transforms Point
Resources into a top 10 producer on the Norwegian Continental shelf and
increases production c.10-fold to 48mboepd while adding 128mmboe of
oil-weighted reserves. The transaction adds significant technical capability
with the transfer of 300 staff to Point Resources.
Point Resources was formed in 2016 by the merger of Core
Energy, Spike Exploration and Pure Energy, all portfolio companies of Norwegian
E&P private equity specialist HitecVision. The merger created a company
with a portfolio weighted towards exploration and development positions (e.g.
Brage, Brasse, Pil) and the acquisition of the ExxonMobil assets helps to
reweight the portfolio into more of a full cycle one.
The key assets acquired were ExxonMobil’s operated positions:
Balder, Ringhorne and Jotun; Forseti is being decommissioned. Point Resources
has identified significant upside in the asset base that can be achieved
through infill drilling – likely to have been overlooked by ExxonMobil with the
portfolio being increasingly immaterial within ExxonMobil’s global business.
For ExxonMobil, the divestment leaves it with a non-operated portfolio in
Norway and therefore a much lower country cost base, but still provides a
platform to access high impact Norwegian and Barents Sea exploration.
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| Source: Wood Mackenzie 4D seismic has identified new development locations and exploration targets around Balder and Ringhorne |
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