Norway-based investment fund HitecVision has merged three oil companies it manages through private equity funds to form a mid-sized independent oil company focused on the Norwegian Continental Shelf.
Pure E&P AS (previously Rocksource), Spike Exploration AS, and Core Energy AS will be consolidated to create Point Resources.
HitecVision said the funds from the three companies would jointly invest NOK 3.5 billion ($393.7 million) in further growth capital.
The companies are comparable in size, with a combined workforce 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, Snorre, 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 portfolio of exploration licenses.
Jan Harald Solstad, senior partner in HitecVision and responsible for the investment in Point Resources, said: “Core Energy, Pure E&P and Spike Exploration complement each other both in terms of portfolio and team expertise.”
“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.”
The CEO of Point Resources will be Roar Tessem, currently CEO of Pure E&P. Tessem 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.
Tessem said: “I look forward to lead Point Resources. 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.