NEO Energy and HitecVision are pleased to announce the signing of a transaction that puts NEO Energy among the top five oil and gas companies in the UK.
NEO Energy is acquiring a major portfolio of non-operated oil and gas assets in the Central and Northern North Sea from ExxonMobil.
Following completion, NEO’s expected proforma 2021 production will be circa 70,000 barrels of oil equivalent per day (boepd), growing organically to more than 80,000 boepd in 2024 through ongoing field developments.
NEO is acquiring a substantial, cash generative portfolio that will significantly increase and diversify its producing asset base. Adding close to 40,000 boepd and more than 140 million boe of reserves, it represents a major step towards NEO’s near-term target of producing 120,000 boepd.
The acquisition is an important milestone for NEO, supporting the company’s strategy of being a leading full-cycle E&P company on the UKCS. On completion of the transaction, NEO will have a strong presence in the key hubs in the Central and Northern North Sea, with total reserves and resources of around 300 million boe. The company will have a total of 35 fields both producing and under development.
The agreement is valued at more than USD 1 billion. There may be additional contingent considerations of approximately USD 300 million based on the potential for increases in commodity prices.
The portfolio to be acquired consists of 21 assets, including 14 fields and a number of infrastructure positions.