Harbour Energy plc has agreed to buy for $170 million (£127m) the UK North Sea assets of Waldorf Energy Partners Ltd and Waldorf Production Ltd, currently in administration.
CAPRICORN
The company said that the binding share sale and purchase is expected to add 20 thousand barrels of oil equivalent per day, and 2P reserves of 35 million barrels of oil equivalent.
Harbour’s interest in its operated Catcher field will increase from 50 to 90%, and it will acquire a new production base in the northern North Sea and a 29.5% non-operated interest in the Kraken field.
The deal has also been noted by Capricorn Energy plc which, under its previous name of Cairn Energy, agreed in 2021 to sell its Catcher and Kraken interests to Waldorf.
Capricorn would in return receive 25% interest in the Columbus field, but has since been awaiting payments.
“Capricorn has entered into a lock-up agreement in support of the transaction and has agreed to compromise its unsecured claims against Waldorf for a payment of around $4m to $5m,” said the company today.
“Capricorn will also retain the right to participate in potential residual claims.”
Waldorf Production Ltd, in which Waldorf Energy Partners Ltd owns 75% or more shares, entered administration in June 2024.
Chief executive officer Paul Tanner said: “This transaction will deliver an outcome which is beneficial for the Waldorf group and its stakeholders including creditors, customers, suppliers and joint venture partners.
“We are delighted that custodianship of the group’s assets will be passed to Harbour Energy, one of the leading UK North Sea operators, ensuring they are in the right hands for the future.”
The acquisition, effective 1 January 2025, is expected to complete during the second quarter of 2026, subject to regulatory approval and settlement of certain Waldorf group liabilities.
Managing director of Harbour’s UK business unit, Scott Barr, added: “This transaction is an important step for Harbour in the UK North Sea, building on the action we’ve already taken to sustain our position in the basin given the ongoing fiscal and regulatory challenges.
“It stabilises the Catcher joint venture partnership and delivers immediate cash flow benefits.
“It also improves the long-term sustainability of our UK business, the jobs it continues to support and the energy security it provides.
“In addition, it facilitates a welcome solution to funding and decommissioning challenges for multiple parties in the UK North Sea.”