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Independent oil explorer and producer Nautical Petroleum plc (LSE:NPE) topped the London trading board early Wednesday, following an offer made by Cairn Energy plc to acquire the company for £414 million.
Shares of Nautical Petroleum jumped by more than half its value on 12th June 2012 to £4.62 a share by 9:00 GMT, 12 pence higher than the £4.50 a share offer made by Capricorn Energy Limited, a wholly-owned subsidiary of Cairn Energy.
Building a Balanced Portfolio
“This acquisition is another step towards building a balanced portfolio of transformational exploration, appraisal and development assets,” stated Cairn Energy’s Chief Executive, Simon Thomson.
“Specifically we will increase our equity position in the Catcher area, which contains several oil discoveries and follow-on prospectivity, and acquire a material stake in Kraken, another large, North Sea oil development project,” Mr. Thomson continued.
Acquiring Nautical Petroleum will add a further 15% interest in the Catcher area, considered “one of the most significant UK Continental Shelf discoveries of recent years”, to a total interest of 30%, with the first 15% gained through the acquisition of Agora Oil & Gas AS in April 2012.
Cairn Energy will also acquire the 25% interest in the Kraken oil discovery, which 2P reserves estimate reached 167 million barrels of oil.
The 50% interest in the Ketos prospect, which lies right next to the Kraken field, will also be acquired by Cairn Energy, should the sale be completed after approval from the shareholders of Nautical Petroleum.
“In addition to these discoveries, this acquisition will add a number of North Sea exploration prospects to our existing 2012 and 2013 exploration programme in the UK and Norway,” Mr. Thomson concluded.
Nautical Petroleum CEO Comments
In a message commenting on the offer, Nautical Petroleum’s Chief Executive, Steve Jenkins expressed his gratitude, while recalling the past and looking forward to the future:
“We are pleased to announce Cairn’s recommended offer to our shareholders. As a Board we feel the Offer recognises the significant value in Nautical’s portfolio and provides our shareholders with the opportunity to crystallise this value, with certainty in cash, today.”
“Since Nautical’s inception and IPO in 2005 we have built a significant company with an outstanding record of hydrocarbon discoveries and commercial success. I would like to thank my fellow directors, employees and consultants at Nautical, who have been instrumental in delivering these outstanding results.”
“We believe that Cairn’s technical abilities and financial strength can continue the company’s successful track record and bring further benefits for our employees and partners.”
Company Spotlight
Nautical Petroleum was established with the goal of becoming a significant producer of oil by exploring the UK Continental Shelf and Europe. The company holds exploration rights in the UK North Sea as well as producing assets in the UK, France, and Ireland.
References
↑ Cairn Energy Northwest Europe Operations
↑ Kraken Oil Discovery Overview
↑ Nautical Petroleum Company Overview
