Viaro Energy has reached an agreement to acquire Deltic Energy via its main operating subsidiary RockRose Energy.
The acquisition – structured as a recommended all-cash offer by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 – underscores Viaro’s continued commitment to long-term investment and responsible growth in the UK North Sea. Deltic’s licence interests present a highly complementary fit with Viaro’s existing portfolio, offering near-term development potential and enhancing the Group’s long-term resource base.
In particular, Viaro will prioritise the development of the Selene discovery – one of the largest gas fields in the UK Southern North Sea in the past decade. Viaro intends to leverage its operational expertise and financial capability to advance the development of Selene, reaffirming its strategic focus on unlocking critical domestic energy resources and supporting the UK’s energy security.
Viaro also plans to progress the nearby Blackadder exploration prospect, which is geologically analogous to Selene and well-positioned near existing Viaro infrastructure. If successful, Blackadder has the potential to add to near-term production and extend the life of surrounding host facilities.
Viaro Energy CEO Francesco Mazzagatti commented: 'Deltic’s portfolio represents a natural fit with Viaro’s existing assets and strategic focus in the North Sea. The Selene discovery is a key driver for this Acquisition, which forms an important component of Viaro’s recently announced transaction with Shell and ExxonMobil, as well as within the broader basin context. The transaction reflects our commitment to advancing key developments responsibly and with the continuity they require. By working with joint venture partners to overcome the economic challenges imposed by the current fiscal uncertainty, we aim to ensure that important developments like Selene can be successfully progressed towards production in a timely manner, and with the right level of technical and financial support.'
Commenting on the Acquisition, Andrew Nunn, CEO of Deltic Energy, said: 'Despite the difficult political and fiscal backdrop impacting the UK E&P industry over a number of years, the achievements of the Deltic team and the quality of our assets have been recognised by Viaro. This transaction provides certainty for shareholders as well as our staff, regulators and JV partners who are progressing the Selene opportunity towards development for the benefit of the UK. We are looking forward to working with the wider Viaro team as we continue to move the Selene and Blackadder opportunities towards production and applying our proven exploration expertise to Viaro’s existing and expanding portfolio of Southern North Sea licences.'?
Commenting on the Acquisition, Mark Lappin, Chairman of Deltic Energy, said: 'I couldn’t be more proud of the journey and the work of this tiny team. Deltic have delivered a 100% success rate with two major gas discoveries from two wells drilled. Given the capital required to progress our exploration successes to the next stage, it is the right time to change direction. The acquisition by Viaro gives the Deltic business access to a different funding model which is better suited to the current business environment and will ensure discoveries are progressed and gas will be delivered to where it is needed.'
Source: Viaro Energy
