The cash consideration isbased on a gross asset value of USD 2.7 billion and is adjusted for debt, networking capital and interest on the net purchase price. The effective date ofthe transaction is 1 January 2014 and it is expected to close in the fourthquarter 2014, subject to customary regulatory approvals.
After the transaction, Det norske will have 202 million barrels of oil equivalent (boe) of 2P reserves. The plan for development and operation for Johan Sverdrup, scheduled for submission in February 2015, will increase reserves significantly. In addition, the combined company will have contingent resources amounting to 101 million boe, excluding Johan Sverdrup.
Further identified upside in Marathon’s portfolio is estimated at approximately 80 million boe. Combined 2013 production for the two companies amounted to approximately 84 thousand boe per day, making Det norske one of the largest listed independent E&P companies in Europe in terms of output.
“The strategy and vision of Det norske has always been to create astrong Norwegian E&P company. With this transformational transaction wehave achieved our goal well ahead of schedule”, said Sverre Skogen,Chairman of the Board of Det norske. “We believe that there is stillhigh potential on the Norwegian Continental Shelf and Det norske willremain a pure play NCS company”.
