The largest gas producer in the North Sea, Centrica, added to its portfolio of assets in the region via a $1.5 billion deal with Statoil, marking the largest acquisition for the company since its takeover of Venture Production in 2009. The move will increase Centrica’s production by 25% and will include interests in 4 producing assets, including the Kvitebjorn field and 4 discoveries all in the Norwegian sector of the North Sea. The assets are weighted 70% towards gas and the acquisition metrics equate to $13.33 per proven and probable boe and $46,000 per flowing boe of production.
The acquisition comes as part of a larger co-operation agreement that will result in Statoil supplying 50 billion cubic metres of gas per year to Centrica for a ten year period. The supply is set to start upon the ending of Centrica and Statoil’s current supply agreement in 2015 but will be 10 times larger in size and will be sufficient to meet 5% of the UK’s gas demand.
Kohlberg Kravis & Roberts Co confirmed rumours that have been circulating since the start of November this week, when they announced that in partnership with 3 other companies they are acquiring one of the largest private oil and gas companies in the United States, Samson Investment, for $7.2 billion. The consortium will include fellow private equity companies, Crestview Partners and Natural Gas Partners and Japanese trading house Itochu Corp. It has been reported that Apache were beaten into second place in the bidding for the company after a suppressed share price meant it was unwilling to use equity to fund the large purchase price.
Samson Investment is the owner of a varied portfolio in the United States including 4,000 operated wells and interests in 10,000 wells in total. The KKR consortium will not be acquiring the Gulf Coast assets of Samson as part of the deal, but they will still gain assets in both developed and emerging shale plays including the Bakken, Granite Wash, Powder River, Cana Woodford, Cotton Valley and Haynesville-Bossier. The assets are weighted 80% towards gas and will continue KKR’s strategy of investing in shale gas plays during the US gas price slump, as it has done for the past 2 years.
As part of the deal, Itochu will obtain off-take agreements from the acquired assets totaling 1 million tons per annum to be exported via LNG. Although the peak production rate isn’t due until 2015, the West Coast of the United States currently has no export capacity and the only currently planned export capacity on the west coast of North America is in British Columbia in Canada, very far from Samson’s current operations.
Seaview Energy Corp, a company with a market cap of $30 million, made a transformational deal that included the acquisition of 3 private companies for a combined total of $113 million (net of surplus working capital). The companies include Charger Energy Corp, Silverback Energy and Sirius Energy and will give Seaview Energy an additional 2.8 million boe of 1P reserves and 1,600 boe/d of production weighted 50% between oil and gas.
In the oil services sector, UK-based The Weir Group acquired Seaboard Holdings, a specialist in unconventional assets in North America. The $675 million acquisition cost equated to an EBITDA multiple of 7.2 based on predicted income for 2011.
|Acquirer||Target Company||Target Business Segment||Brief Description||Total Acquisition Cost ($000)|
|Kohlberg Kravis Roberts & Co.||Samson Investment Company||E&P||Kohlberg Kravis Roberts & Co in tandem with Itochu, Natural Gas Partners and Crestview Partners acquires Samson Investment Corp, the largest private oil and gas company in the United States||7,200,000|
|Centrica||Statoil ASA||E&P||Centrica acquires a portfolio of Norwegian assets from Statoil ASA||1,560,054|
|The Weir Group PLC||Seaboard Holdings Inc||Oil Services||The Weir group acquires Seaboard Holdings Inc, a specialist in the North American unconventional oil and gas drilling and production market||675,000|
|Seaview Energy Inc||Silverback Energy Ltd.||E&P||Seaview Energy Inc acquires Silverback Energy Ltd||63,615|
|Andes Energia PLC||Grecoil||E&P||Andes Energia acquires Grecoil y Cia, owner of a 66% working interest in the producing block Vega Grande, 100% working interest in the La Paloma development block and 100% working interest in the Cerro Alquitrán development block||27,171|
|Seaview Energy Inc||Charger Energy Corp.||E&P||Seaview Energy Inc acquires Charger Energy Corp.||33,897|
|Seaview Energy Inc||Sirius Energy Inc.||E&P||Seaview Energy Inc acquires Sirius Energy Inc.||15,399|
|Adino Energy||Ashton Oilfield Services, LLC||Oil Services||Adino Energy acquires all the assets of Ashton Oilfield Services, LLC||6,000|
|Orion Petroleum Limited||Petrel Energy Limited||E&P||Orion Petroleum Ltd merges with Petrel Energy Limited||4,845|