Kjetil Hove, EVP Exploration & Production Norway , Equinor (left) and Chris Elliott, CEO, Wellesley (right)
Wellesley Petroleum AS is pleased to announce that the company has entered into an agreement to sell a package of licence interests on the Norwegian Continental Shelf to Equinor Energy AS.
The following assets in the Northern North Sea will be transferred to Equinor:
- 40% of Production Licences 878, 878 B & 878 C (containing the Atlantis discovery)
- 20% of Production Licences 923 & 923 B (containing the Røver Nord and Røver Sør discoveries)
- 45% of Production Licences 630 & 630 CS (containing the Toppand discovery)
- 15% of Production Licence 248 I & 45% of Production Licence 925 (comprising an estimated 18.8% of the Grosbeak discovery)
The transaction will be structured as an asset sale, effective 1.1.2023.
Chris Elliott, CEO of Wellesley, commented:
“This transaction between Wellesley and Equinor is a natural consequence of the highly productive cooperation between our two companies in the exploration phase of the assets being transferred. The agreement provides Equinor with more scale in high-quality operated development projects with excellent ESG characteristics, whilst allowing Wellesley to crystallise value and refocus the portfolio towards our core exploration acreage.
Upon completion of the transaction, Wellesley will have returned more than half a billion dollars to investors through the sale of discoveries since 2019, attesting to the enduring value potential of hydrocarbon exploration on the Norwegian Continental Shelf. We look forward to working with Equinor and other partners as we embark on further drilling campaigns in our exciting exploration portfolio over the course of the coming years.”
The transaction will be structured as an asset sale, effective 1.1.2023. The closing of the transaction is subject to customary government and licence approvals and is expected to be completed during the first half of 2023.
Jefferies International Ltd. advised Wellesley on the transaction.
About Wellesley Petroleum
Wellesley is a privately owned Norwegian exploration and development company, backed by Bluewater, the global private equity firm for the energy transition. Wellesley was founded in 2015, and has drilled 27 wells to date with 9 commercial discoveries, comprising 195 mmboe net to the company. Wellesley is a qualified HPHT operator and will drill its first operated HPHT well in Q2 2023.