Hague and London Oil (Halo), an oil and gas company with a focus on the Dutch sector of the Southern North Sea, has signed an agreement for the conditional acquisition of the entire share capital of Third Energy Offshore.
The acquisition will enable Halo to gain stakes in several North Sea fields, including 45% of the Greater Pegasus Area and the high-impact Andromeda prospect.
On its part, Halo will exchange 19.25% of the post-completion share capital.
Subject to meeting of the conditions, HALO will acquire the assets through its completely owned subsidiary, Hague and London Oil (HALO B.V.), of the complete issued share capital of Third Energy Offshore, a 100% owned subsidiary of Third Energy Holdings.
Greater Pegasus Area is operated by Spirit Energy where an initial field development plan (FDP) is currently being prepared.
The Pegasus West discovery well tested at 92 million cubic feet per day, while the high impact Andromeda prospect is expected to be drilled in 2019.
This purchase represents a major step in Halo’s strategy to tap sustainable, lower risk opportunities in hydrocarbon sites.
In the period to 30 June, Halo posted revenues of £13.8m compared to £4.3m in fiscal year 2017 and an operating profit before interest, taxes of £1.5m as against £0.2m in 2017.
Cash flow from operating activities was recorded as £4.9m for the first half of 2018 compared to £1.1m in 2017. At the end of first half of 2018, cash balances were £4.5m compared to £3.8m last year.
The firm intends to seek other, potential, acquisitions following this latest acquisition. These plans are currently under different stages of evaluation and/or discussion.
Halo plans to call an EGM with regard to the acquisition and ongoing operations.