HitecVision sells Spring Energy to Tullow Oil

HitecVision has sold Spring Energy AS to Tullow Oil for $372.3 million. Spring Energy is an oil and gas company established in October 2007 by a group of exploration & production professionals with experience from the Norwegian Continental Shelf.

PRESS RELEASE

HitecVision is pleased to announce the sale of Spring Energy AS to Tullow Oil plc for a total consideration of USD 372.3 million on a 100% enterprise value basis, which will be adjusted for working capital. In addition to the cash payment on closing there is a deferred contribution of up to USD 300 million, contingent on future well results.
Spring Energy AS is an oil and gas company established in October 2007 by a group of Exploration & Production professionals with extensive experience from the Norwegian Continental Shelf (“NCS”). The Company participates in exploration, appraisal and development projects and has built a significant portfolio of attractive licenses on the NCS.
Hitecvision’s initial investment was made in May 2008, with a number of subsequent add-on investments to fund the company’s growth. HitecVision capitalized on the substantial in-house experience from the successful investments in the E&P companies Revus (IPO and exit in 2005) and Noreco (IPO in 2007, exited in 2008/2009).
Spring Energy has been through five years of rapid growth and impressive results. The company was pre-qualified as a licence partner on the NCS by the Norwegian authorities in July 2008 and as an operator in May 2009. It has built an attractive portfolio of licenses on the NCS. This has been achieved through a balanced strategy where Spring Energy has acquired acreage through transactions in the asset market and through license awards after successful applications in the license rounds. To execute the exploration strategy HitecVision has been active in securing the needed equity and bank funding for Spring with an exploration loan facility of NOK 2 billion from a syndicate of international banks. The company has achieved a strong exploration track record with 6 commercial discoveries from 12 wells since start-up in 2008 (3 technical discoveries) and with 16 wells planned for the next 24 months
The transaction with Tullow Oil plc is an all cash transaction valued at USD 372.3 million on a 100% enterprise value basis. In addition, a contingent payment element has also been agreed that is linked to future exploration success amounting up to USD 300 million. The contingent payment will be tied to four specific prospects in the drill-queue and will be paid on a sliding scale up to a maximum of USD 150 million per prospect and USD 300 million in aggregate About HitecVision
HitecVision is a leading investor in the international oil and gas industry, providing capital and competence to growth companies in Europe and North America. The firm’s background from the industry enables it to create value by partnering with entrepreneurial managers to build substantial and sustainable companies.
HitecVision is a serial entrepreneur having acquired, invested in or established more than 100 companies, exited over 70, and listed seven companies (IPOs).
HitecVision manages four funds with a total committed capital of USD 3 billion and is headquartered in Stavanger with offices in Oslo and Houston
About Spring Energy
Spring Energy is an independent, upstream oil and gas company focused on the Norwegian Continental Shelf. Founded in 2007, the Company has, through license applications, farm-in transactions, acquisitions and swaps, built a considerable portfolio of exploration and appraisal assets. The Company’s portfolio provides a balanced spread of risk and reward, encompassing 28 licenses, including 5 as operator and one producing field. It has a team of 37 highly experienced technical and commercial persons based in Oslo.
About Tullow Oil plc
Tullow is a leading independent oil & gas, exploration and production group, quoted on the London, Irish and Ghanaian (symbol: TLW) stock exchanges and is a constituent of the FTSE 100 Index. The Group has interests in over 100 exploration and production licences across 24 countries and focuses on four core areas: Africa, Europe, South Asia and South America.