Solveig Gas Norway AS has agreed to acquire all shares of Capricorn Norge AS from Cairn Energy PLC for
$100 million plus customary working capital adjustments on completion (including an adjustment for the tax receivable related to historical exploration activity).
The gross asset value of the interests being sold (per Cairn’s half-year report issued Sept. 10) was $207.4 million, with a net asset value of $80.1 million. Capricorn Norge AS reported a loss of $6.5 million for the period ending June 30.
Upon closing, expected in early 2020 subject to consent by the Norwegian Ministry of Petroleum and Energy, partner and third-party approvals, Cairn will have disposed of all of its assets in Norway and will reduce its committed exploration and development capital expenditure by $100 million.
In August, Cairn Energy sold a 10% interest in Nova oil field to ONE-Dyas Norge AS, Amsterdam, for $59.5 million plus working capital adjustments (OGJ Online, Aug. 6, 2019).
“We continue to have a material business in the UK North Sea where production performance of the Kraken and Catcher assets remains strong,” said Simon Thomson, Cairn chief executive.
Cairn holds 29.5% interest in the EnQuest-operated Kraken heavy oil field and 20% of Premier Oil PLC-operated Catcher oil field.
The transaction has an effective date of Jan. 1, 2020.