Kirk Lovegrove acted as strategic and financial adviser to Sumitomo Corporation on the sale of its UK subsidiary Summit Exploration and Production Limited (Summit) to Ithaca Energy for $224 million plus customary adjustments. Summit’s net production is currently ca. 2.4 mboepd, coming from its 2.1875% interest in the TotalEnergies operated Elgin-Franklin fields. Summit also holds exploration prospects, including a 50% operated interest in K2 (block 22/14c). Completion of the transaction is expected during the second quarter of 2022.
On 23rd March 2022, our client Waldorf Production Limited (“Waldorf”) signed a binding agreement for the purchase of MOL Plc’s (“MOL”) entire Upstream portfolio in the United Kingdom for $305 million, with an additional oil price linked earn-out scheme during 2022-2025. Kirk Lovegrove & Company was the sole financial adviser to Waldorf on this transaction
Q4 2021 production for the target business was over 12,000 boepd, coming primarily from a 20% interest in the Harbour operated Greater Catcher Area (“GCA”) and a 50% interest in the EnQuest operated Scolty & Crathes fields. The transaction is subject to customary completion conditions and is expected to close during the second half of 2022.
Once completed, the sale will double Waldorf’s interest in GCA and increase its pro forma 2021 production by c. 55% to approximately 34,000 boepd and increase its YE 2020 2P reserves by almost a third to 67.5 mmboe.
Kirk Lovegrove acted as strategic and financial adviser to JX Nippon Oil & Exploration Corporation (JX-NOEX) on the sale of its UK subsidiary JX Nippon E&P UK Limited (JXNEPUK) to Neo Energy for $1.655 billion. The transaction some 26,000 boepd of non-operated production, coming primarily from a 20% interest in the Equinor operated Mariner field and an 18% interest in the TotalEnergies operated Culzean field. In a separate transaction, KLC advised on the sale of JXNEPUK’s interests in the Andrew Area to BP for an undisclosed sum. Both transactions were signed in late November 2021, with completion expected around end of Q1 2022.