Neptune Energy Group (“Neptune”) announced that it has entered into a Sale and Purchase Agreement to acquire certain development and exploration assets in the UK Central North Sea from Apache North Sea Limited (“ANSL”), a wholly owned subsidiary of Apache Corporation (“Apache”).

Neptune will acquire Apache’s 35% working interest in the Seagull development and a 50% working interest in the Isabella prospect; both operated by ANSL. The proposed transaction is subject to the customary regulatory approvals, with completion expected this year.

The transaction follows Neptune’s announcement in June to acquire VNG Norge’s portfolio of production, development and exploration assets on the Norwegian continental shelf, and demonstrates Neptune’s commitment to the UK Central North Sea.

Highlights:

Acquisition provides Neptune with a low cost, near-term development in close proximity to existing infrastructure, as well as a material undrilled prospect both located in the Central North Sea
The Seagull development will consist of a multi-well subsea tieback project to existing nearby facilities that will commence during 2019 with first production expected prior to Q1 2022
The Isabella prospect is considered one of the largest undrilled exploration opportunities in the Central North Sea, with planned drilling operations also commencing during 2019
Jim House, Chief Executive Officer of Neptune Energy Group, said:

“In line with our strategy of expanding positions in key jurisdictions, Seagull and Isabella are both high quality opportunities which complement our existing assets within the broader North Sea theatre of operations. We are extremely pleased to announce our second acquisition since the completion of the ENGIE E&P transaction last February. The signing of the SPA with Apache, which follows the announcement in June of our agreement to acquire VNG Norge, underlines our determination to continue building a leading international independent E&P company.”

About Neptune Energy Group

Neptune is an independent global E&P company and, having completed the acquisition of the exploration and production business of the ENGIE group in February 2018, is now active across the North Sea, North Africa and Asia Pacific. The business had production of 165,000 net barrels of oil equivalent per day during Q1 2018 and 2P reserves at 31st December 2017 of 542 million barrels of oil equivalent. The Company is backed by funds advised by three investors, CIC, The Carlyle Group and CVC Capital Partners.

About Apache

Apache Corporation (NYSE:APA) (Nasdaq:APA) is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom.