The North Sea-focused oil and gas company Independent Oil & Gas said Friday it was considering tabling an all-stock offer for the takeover of rival Deltic Energy.
Deltic Energy is a London-listed company with assets in the North Sea. The company recently changed name from Cluff Energy to Deltic Energy.
IOG said Friday that it had noted the “recent movement of Deltic share price” and then confirmed “it is considering a possible all-share offer for the entire issued and to be issued share capital of Deltic.”
“There can be no certainty that an offer will be made or as to the terms of any such offer. A further announcement will be made as and when appropriate,” IOG said.
According to the takeover coder rules in the UK, IOG has until 5.00 pm on October 9, 2020, to either announce a firm intention to make an offer for Deltic or announce that it does not intend to make an offer.
The takeover push comes a month after Deltic Energy on August 11 announced: “a material increase” in the estimated volume of gas as well as a “significant increase” in the chance of success in relation to the Selene prospect in its Southern North Sea block, off the UK coast, where Shell is its partner.
Deltic has described the Selene prospect as the largest undrilled target in established Leman Sandstone play “which has been overlooked due to local geological complexity.”
The joint technical work by Deltic and Shell increased Selene’s gas initially in place (GIIP) estimate from 437 BCF to 629 BCF and the geological chance of success from 39% to 70%. Selene is also located near Shell’s Barque field and with easy access to the Clipper Hub and Bacton Gas Terminal.
Following the announcement of a potential takeover offer by IOG on Friday, Deltic’s share price jumped more than 35 percent from the previous day’s close reaching 1,55p at one point on Friday afternoon (CET).
As for the potential bidder, IOG, the company is not new in the Southern North Sea region. As a matter of fact, the Southern North Sea is where IOG is currently working on one of its most important projects – the Core Project Phase 1.
The Core Project comprises gas resources across six discovered UK Southern North Sea (“SNS”) gas fields. Phase one, approved by the UK OGA in May, will focus on the development of Blythe, Elgood, and Southwark fields.
IOG last month ordered two offshore platforms for the project from platforms to Dutch contractor HSM Offshore BV. The installation of the two platforms designed to be normally unmanned is scheduled for 1H 2021.
This post appeared first on Offshore Engineer News.