Hitec to merge trio of Norwegian independents

Offshore staff

STAVANGER, Norway – Private equity investor HitecVision is merging three Norwegian oil companies into a new entity, Point Resources.

Pure E&P (ex-Rocksource), Core Energy, and Spike Exploration are all said to be comparable in size, with a combined workforce of 77.

Core and Pure are based in Oslo, while Spike is located in Stavanger. Hitec says the new company will maintain offices in both cities.

Point Resources will have ownership in 57 licenses on the Norwegian continental shelf: these include the two operatorships and eight licenses awarded to the three individual companies this week under Norway’s APA 2015 licensing round.

Their combined oil and gas production will be around 10,000 boe/d, mainly from the Brage, Snore, Hyme, and Bøyla fields.

In addition, Point will have interests in various discoveries likely to be developed in the next few years, namely Pil (45%), Garantiana (30%), and Snilehorn (17.5%), and a wide-ranging portfolio of exploration licenses.

Jan Harald Solstad, senior partner in HitecVision, said: “The current market calls for scale and portfolio diversification. The establishment of Point Resources with a new capital base of NOK3.5 billion [$393 million] reflects our continued belief in the opportunities on the NCS.

“Our ambition is to create a leading independent oil company with a combination of production, development projects, and an active exploration program. Point Resources will be a robust platform well positioned for growth, both organic and through mergers and acquisitions.”

Roar Tessem, currently CEO of Pure E&P, will be CEO. He was formerly CEO of another Hitec company, Spring Energy, and country manager for Tullow Norge.

The merger should close during the first half of 2016, pending approval from the Norwegian authorities.

01/21/2016

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