NEO Energy and HitecVision are pleased to announce the signing of a transaction that solidifies NEO’s position among the largest oil and gas producers in the UK.
Based on current estimates NEO’s production will grow from circa 80,000 barrels of oil equivalent per day (boepd) in 2021 to a stable production base in the period 2022 – 2026 of between 90,000 and 100,000 boepd.
A growing and then stable production profile in this period gives NEO a unique position in the UK offshore oil and gas industry. About 55% of NEO’s production growth in this period will be operated by NEO.
This announcement follows the circa USD 1 billion agreement NEO and HitecVision signed last month, which sees NEO acquire a major portfolio of non-operated oil and gas assets in the Central and Northern North Sea from ExxonMobil.
Through the acquisition of Zennor, NEO will take ownership of a quality portfolio of assets centred around the strategic Britannia and ETAP production hubs, with organic near-term growth prospects from sanctioned projects including the operated Finlaggan tie-back, scheduled for first production later this year, and a series of future development opportunities including the operated Greenwell and Leverett projects (tie-backs to Britannia), and Murlach (tie back to ETAP).
This acquisition will increase NEO’s portfolio of operated asset providing greater control and capital allocation flexibility. The Zennor portfolio adds circa 40 mmboe of reserves and more than 90 mmboe of un-risked resource to NEO.
Following completion of the transaction, the Zennor team will join NEO, increasing headcount to over 180 people. This deal delivers a combination of two highly complementary teams, particularly enhancing NEO’s technical and operating skills and capabilities.
The transaction has an effective date of 1 January 2021.