AIM listed Hague and London Oil (HALO) PLC has closed the deal for Tullow Oil’s natural gas assets in the Dutch North Sea.
The buy-up of the Tullow 101 Netherlands B.V. follows a shareholders meeting and the payment of an initial consideration.
The structured finance and off-take facility provided by Engie has been established, for a total of €10million of which €6million has been drawn down to fund the initial consideration plus associated costs.
The remainder of this initial €6million will be used for working capital and to provide funds for future development capital, new ventures, or acquisitions exceeding net operating cash flows generated from the Netherlands Assets.
Additionally, there remains a €4million undrawn tranche of the Engie facility, which HALO can utilise in part, or whole, for additional capital needs in 2018.
It is also possible to expand the ENGIE facility in the future to finance any similar acquisitions that the company may pursue.
HALO is now a producer of more than 2,500 boepd, having 2P reserves in excess of 12 mmboe, more than 19 mmboe in contingent resource and interests in 17 different licenses offshore Netherlands as well as associated pipelines and infrastructure.
Andrew Cochran, HALO’s chairman and interim chief executive, said: “The completion of this transaction marks a momentous event in HALO’s corporate development.
“This transformational acquisition wouldn’t have been possible in the current environment without Engie’s support, as established in the MoU signed in August 2016.
“We are proud to have demonstrated our ability to cultivate strong industry relationships with larger, supportive entities and to deliver complex transactions; all the while protecting and growing shareholder value.
“As we start the process of integrating these assets into the company, we plan to continue with the same discipline we have operated previously and look forward to continued, accretive and material growth for HALO.”