Acquisition of Spinnaker completed

abarrelfullabarrelfull wrote on 26 Feb 2013 11:47
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2005-12-13

Spinnaker Exploration Company on Tuesday adopted the merger agreement with Norsk Hydro ASA, approved by the Board of Directors of both companies in September.

A majority of the votes supported the merger. Hydro would later the same day complete the acquisition in an all-cash transaction for USD 2.45 billion.

Hydro will pay USD 65.50 per share in cash for all outstanding shares of Spinnaker Exploration. Hydro will also assume approximately USD 137 million in net interest-bearing debt.

High-quality development projects

Spinnaker Exploration Company is engaged in exploration, development and production of oil and gas, mainly in the Gulf of Mexico. It has about 80 employees in Houston, who will join Hydro’s Gulf of Mexico business unit.

Spinnaker’s portfolio contains a number of high-quality development projects. Total production is expected to reach about 50,000 barrels of oil equivalents (boe) per day by 2008. Spinnaker’s total production rate during the first half of 2005 was 22,845 boe per day. Expected total reserves are 129 million barrels of oil equivalents.

Spinnaker Explorations key Gulf of Mexico deepwater assets are:

  • Front Runner - 25.00% (oilfield in production)
  • Spiderman - 18.33% (gas field under development)
  • San Jacinto - 26.67% (gas field under development)
  • Q - 50.00% (gas field under development)
  • Thunder Hawk - 25.00% (oil discovery)

Spinnaker Exploration also produces oil and gas from 38 blocks on the shelf of the Gulf of Mexico. Spinnaker’s SEC reserve base as of June 30, 2005 was 62 million boe.

Spinnaker’s portfolio includes significant exploration acreage, comprising deepwater and deep-shelf prospects, as well as an extensive seismic database covering most of the Gulf of Mexico. It also contains interesting exploration positions in Nigeria.

Hydro is already involved in the Telemark and Lorien discoveries in the Gulf of Mexico. Combined with the assets of Spinnaker, Hydro expects to be a significant player in the Gulf of Mexico in the years to come.

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