In October 2019, Petrogas and HitecVision announced an agreement to acquired operated and non-operated assets in the U.K. North Sea from Total for an overall consideration of $635 million. Assets are located in four producing areas with an expected average 2019 production of 25,000 barrels of oil equivalent per day. This includes the operatorship of the Quad 15 and Flyndre areas, non-operated interests in the Golden Eagle and Scott/Telford areas, a fully-owned FPSO, and an organizatino of more than 110 employees and contractors.
The acquisition is made by Petrogas NEO, a company jointly owned by Petrogas and HitecVision who intended to build an independent, full-cycle North Sea operator. The companies highlighted plans for additional acquisitions, infill drilling, and development of discoveries near existing infrastructure. The transaction is expected to be completed in 4Q 2019 with an effective date of January 1, 2019.
Total announced in May 2020 that it had agreed to a sale of its non-core UK assets to NEO Energy after Petrogas backed out of the deal. The deal closed in August 2020 for a lowered price.