Point Resources targets increased oil recovery in Norway’s first license

1 November, 2017

Point Resources targets increased oil recovery in Norway’s first license

In March 2017, ExxonMobil Exploration and Production Norway AS and Point Resources AS, a HitecVision portfolio company, signed a sales and purchase agreement for acquisition of the ExxonMobil-operated Balder, Ringhorne, Ringhorne East, Jotun and Forseti fields on the Norwegian Continental Shelf (NCS). The agreement includes offshore installations and ExxonMobil’s offices at Forus. About 300 ExxonMobil employees have transferred to Point Resources as part of the transaction. 

Following completion of a comprehensive handover program and receipt of all regulatory approvals, the transition was concluded on 1 November 2017. From this date, Point Resources becomes the new operator of the fields.

With this new asset base, Point Resources will increase its net production tenfold to approximately 50,000 barrels of oil equivalent per day (boepd), making the company both a mid-sized Norwegian exploration and production (E&P) company and a significant player on the NCS. By 2022, the company is expected to organically grow its production to over 80,000 boepd.

“It is quite remarkable that 52 years after production license number one (PL 001) was awarded to ExxonMobil in 1965, with the first Norwegian oil discovery two years later, we still recognize further potential in the area. We are planning to extend the field life of Balder and Ringhorne, carry out new seismic surveys, and initiate new drilling campaigns to increase oil recovery. Good reasons for optimism,” said Morten Mauritzen, who leaves his position as Lead Country Manager for ExxonMobil’s affiliates in Norway to become the new chief executive officer (CEO) of Point Resources from 1 November.

At the same time, previous CEO, Jan Harald Solstad, returns to Point Resources’ owner HitecVision as senior partner. “After finalizing the acquisition of ExxonMobil’s operated fields and transfer of operatorship, we have created a new significant Norwegian E&P company, with plans to invest more than 20 billion NOK on the NCS over the next five years. The combined company will build on ExxonMobil Norway’s operating organisation, Point Resources’ exploration track record, and HitecVision’s financial strength and M&A background. This will create a platform for further growth, and add value to our shareholders and the Norwegian society at large,” Jan Harald Solstad points out.

Mauritzen, with over 35 years of experience at ExxonMobil, looks forward to further developing the company and building a new work environment. “An exciting future lies ahead of us. I will enjoy meeting new challenges together with dedicated and competent staff. New activity planned in Norway’s oldest license area is a symbol of the possibilities still present on the Norwegian shelf. PL 001 is far from an industry sunset,” Mauritzen said. 

About Point Resources:

Point Resources was formed in 2016 from the merger of Core Energy, Spike Exploration and Pure E&P to create a new full cycle exploration and production company on the Norwegian Continental Shelf.

The company is financially robust and has a broad asset portfolio. With significant holdings in several discoveries expected to be developed over the coming years, total production is expected to grow organically to over 80,000 boepd by 2022.

Point Resources will have about 400 employees with headquarters in the Stavanger Region (Grenseveien 6, Forus) and a branch office in Oslo (Grundingen 3, Aker Brygge).

More information available on www.pointresources.no

 

About HitecVision:

HitecVision is Europe’s leading private equity investor focused on the upstream offshore oil and gas industry. HitecVision is headquartered in Stavanger with offices in Oslo and Houston. Since 1994, the HitecVision team has invested in, acquired or established more than 150 companies.

More information available on www.hitecvision.com