HitecVision merges three oil companies and invests NOK 3.5 billion
HitecVision merges three oil companies into Point Resources, a robust mid-sized independent oil company focused on the Norwegian Continental Shelf. The new company already has significant activity on the NCS, and will engage in both exploration, development and production. The current market situation provides many opportunities for companies with a strong capital base, and Point Resources will therefore be provided with NOK 3.5 billion for further growth through development of discoveries as well as acquisitions.
Point Resources will be created by consolidating the three oil companies Pure E&P AS (previously Rocksource), Spike Exploration AS, and Core Energy AS. All three companies are owned by private equity funds managed by HitecVision, and the funds will jointly invest NOK 3.5 billion in further growth capital. The companies are comparable in size, with a combined work force of 77 employees. Core and Pure have offices in Oslo, and Spike is located in Stavanger; the new company will maintain offices in both cities.
Point Resources will have ownership in 57 licenses on the Norwegian Continental Shelf. From its inception, the company will have an oil and gas production of about 10,000 barrels per day, mainly from the Brage, Snore, Hyme and Bøyla fields. The company will also have ownership interest in several discoveries that are expected to be developed within the next couple of years, such as Pil (45%), Garantiana (30%), and Snilehorn (17.5%). Point Resources will be the largest owner in Pil, and will be capitalized to participate with its share of the upcoming field development. In addition to production and development, the company will have a large portfolio of exploration licenses.
– Core Energy, Pure E&P and Spike Exploration complement each other both in terms of portfolio and team expertise, says Jan Harald Solstad, senior partner in HitecVision and responsible for the investment in Point Resources.
– The current market calls for scale and portfolio diversification. The establishment of Point Resources with a new capital base of NOK 3.5 billion reflects our continued belief in the opportunities on the NCS. Our ambition is to create a leading independent oil company with a combination of production, development projects and an active exploration program. Point Resources will be a robust platform well positioned for growth, both organic and through mergers and acquisitions.
The CEO of Point Resources will be Roar Tessem, currently CEO of Pure E&P. Roar Tessem is an experienced industry professional, having previously held the role as CEO of Spring Energy (a former HitecVision portfolio company), country manager for Tullow Norge and various positions in DNO and PGS.
– I look forward to lead Point Resources, says Tessem. The experience and track record of the combined organisations and their individual achievements; the exciting opportunities in the portfolio of fields, discoveries and exploration licenses; the opportunities in the current market; all this combined with a strong financial position creates an ideal basis for the years to come.
The merger of the three companies into Point Resources is expected to close during the first half of 2016, subject to final approval from Norwegian authorities.