Tuesday, November 5, 2024

RockRose Energy Acquires Marathon Oil

February 25, 2019

U.K.-based oil and gas firm RockRose Energy has signed a share purchase agreement to acquire 100% of Marathon Oil UK (MOUK), and 100% of Marathon Oil West of Shetland (MOWOS), from subsidiaries of Marathon Oil Corporation (MRO).

London-headquartered RockRose will pay $140 million (subject to customary adjustments) for the assets, while also taking on the decommissioning liabilities.

MOUK holds a 37-40% operated interest in fields in the Greater Brae Area, and MOWOS holds a 28% interest in the BP PLC-operated Foinaven field unit and 47% in Foinaven East. The deal includes interests in the SAGE, Brae-Forties, and WASPS infrastructure.

At year-end 2018, Marathon Oil carried 21.4 million boe of proved reserves in the UK. Anticipated production is 13,000 boe/d in 2019, taking RockRose’s total net anticipated production to 24,000 boe/d for the year.

The effective date of the Acquisition will be 1 January 2019. The MOUK and MOWOS assets and teams in Aberdeen, Peterhead and offshore will transfer with MOUK and MOWOS to RockRose on completion of the Acquisition.

As the Acquisition will constitute a reverse takeover for the purposes of the UK Financial Conduct Authority's Listing Rules, in accordance with Listing Rule 5.1 the Company has requested that the Company's ordinary shares be suspended from listing on the Official List pending the publication of a prospectus, which will follow completion, or until the Company confirms that the Acquisition is not proceeding.

RockRose Executive Chairman, Andrew Austin said: "This Acquisition marks a major step change in the Group's reserves and production profile. Given the quality of these assets the Board's view is this is a good opportunity to make the transition to the role of operator. We look forward to welcoming  Marathon Oil UK employees, who have an excellent track record operating in the North Sea, to the RockRose team at closing."

Related News