Oil firm RockRose Energy has clinched a deal to buy 13 million barrels worth of non-operated oil reserves in the Netherlands for £94 million.
London-listed RockRose said the transaction would boost its production by more than 5,000 barrels of oil equivalent (boe) per day, taking its total output to around 10,000 boe per day.
RockRose’s production will be 60% gas and 40% oil on completion.
Last year, RockRose executive chairman Andrew Austin said his short-term goal was to build a portfolio with production of 10-15,000 barrels a day.
It will secure the assets through the acquisition of Dyas BV, which owns the non-operated, Netherlands gas and condensate producing assets of the Dyas group of companies.
Dyas group is wholly-owned by SHV Holdings a family-owned Dutch multinational.
RockRose said it would make the purchase using existing cash resources, with no debt or equity issuance or shareholder approval required.
The acquisition has an effective date of January 1, 2018.
Mr Austin said: “On completion this acquisition grows our North Sea business to a level of production that is over 10,000 boepd and in addition to providing significant free cash flow diversifies the portfolio and strengthens the company’s position.
“Management sees significant upside in the combined portfolio and is confident RockRose can organically maintain or grow profitable production from these levels without necessitating additional funding.”
Dyas chief executive Robert Baurdoux said: “After a presence of over 50 years in the Netherlands, the divestment of our Dutch entities is part of a strategic refocussing of our business.
“RockRose Energy is well placed to take-on the stewardship of the Dutch assets, allowing Dyas to pursue new investment opportunities in the UK, Norway, Denmark and Malaysia.”
Earlier this year RockRose pulled out of a deal to acquire 5.16% of the Scott field and 2.36% of Telford from Maersk Oil.
But RockRose did complete three separate North Sea acquisitions late last year.
It wrapped up the deal for Egerton Energy Ventures, giving it a 27.8% non-operated interest in the Galahad field and 8.33% of Mordred in the southern North Sea.
The purchase of Sojitz Energy Project gave RockRose stakes in three assets, while its swoop for Idemitsu Petroleum added interests in 10 North Sea fields to its portfolio.