Sequa Petroleum N.V. Acquires 15% of the Gina Krog Unit From Total

PR62217

LONDON, Oct. 19 /PRNewswire=KYODO JBN/ --

    - Sequa Petroleum N.V. acquires 15% of the Gina Krog unit from Total  

  through its Norwegian subsidiary Tellus Petroleum AS in a new transaction

    Sequa Petroleum N.V. ("Sequa") is pleased to announce that its subsidiary

Tellus Petroleum AS ("Tellus") has entered into an agreement with Total E&P

Norge AS to purchase interests of 30% in PL 029C, 14.78% in PL 029C and 21.8%

in PL 048, representing 15% in the Gina Krog unit on the Norwegian Continental

Shelf.  The effective date of the transaction is 1st January 2015 and the

transaction is subject to normal consent by the Norwegian Authorities. The

transaction is planned to be funded through a combination of debt and equity,

with completion planned for the end of 2015 contemporaneously with the

completion of the Wintershall portfolio transaction, as announced on 18th June

2015.

    The proven and probable (2P) reserves in the transaction is some 33 mill.

boe net to Tellus as per the official Norwegian Petroleum Directorate data. The

field is operated by Statoil (58.7%) and partners are Total (30%), PGNiG (8%)

and Det norske (3.3%). The production is expected to commence in mid-2017

ramping up to a plateau of some 10,000 boed net to Tellus. The Plan for

Development and Operation ("PDO") was approved in June 2013 and gross capex on

Gina Krog is some NOK 32 billion.

    In the transaction, it is agreed that Tellus will pay a completion payment

of ca NOK 1.4 billion pre-tax based on the latest operator project cost

estimates for Total's share in 2015. The seller will retain the tax balances

related to the Gina Krog investments prior to the effective date. On signing,

Tellus paid a deposit of NOK 50 million to Total. On this basis for the Sequa

Petroleum group, the all-in costs until first production for Gina Krog will be

11 USD/boe pre-tax.

    This transaction is a positive addition to the portfolio purchase agreement

with Wintershall, announced in June. Gina Krog provides the company with a

further high quality asset in our core North Sea area, with a production start

date between Ivar Aasen and Maria.  Once in production, the field will provide

cash-flow that will enable further company growth. The deal delivers on Sequa

and Tellus's strategy of rapid growth through acquiring high quality material

assets that are in production or being moved through development into

production.

    About the Companies:

    Tellus Petroleum AS was established in 2012 by a group of entrepreneurs,

with backgrounds from Saga Petroleum, Phillips Petroleum, Norsk Hydro, Hess and

PetroAdvisor, as an independent Norwegian upstream oil & gas company with sole

focus on the NCS. Tellus' strategy is to establish and further enhance the

value of a portfolio of interests in producing fields and small to medium sized

discoveries/developments.  Tellus announced they had signed an agreement to

purchase an asset portfolio from Wintershall in June 2015 consisting of Knarr

(20%), Ivar Aasen (15%), Maria (15%) and Veslefrikk (4.5%) on the NCS.

Concurrent with the Wintershall transaction, Tellus became a subsidiary of

Sequa Petroleum N.V. on 24th September 2015.

    Sequa Petroleum N.V. is an oil and gas company listed on Euronext Marche

Libre which focuses on taking discovered oil and gas reserves and resources

from appraisal through to production. Sequa Petroleum has assembled a highly

experienced management team with a proven track record and expertise in

exploration, appraisal, development and production of oil and gas assets, both

onshore and offshore, in jurisdictions around the globe. Sequa Petroleum is

supported by a strong and dedicated shareholder base, which includes its entire

senior management team as well as the privately owned Principal Investment

holding company Sapinda Holding BV. Sequa Petroleum pursues mid-sized

discoveries that have not yet been fully developed for a number of reasons,

e.g. commercialisation approach, technology application or lack of capital and

Sequa aim to unlock opportunities and realise their potential value.

    Total Exploration and Production Norge AS has been present in Norway for

fifty years and has played a major role in the development of a number of large

fields on the Norwegian Continental Shelf. Total holds interests in 97

production licenses, 31 of which it operates.  The affiliate Total E&P Norge AS

is one of the largest contributors to the Total Group's equity production and

produced 242,000 barrels of oil equivalent per day in 2014.

    Gina Krog is an oil and gas field located 250 kilometres west of Stavanger

and 30 kilometres northwest of the Sleipner A installation. The water depth is

110 - 120 metres. The development solution is a new steel platform on a jacket

substructure similar to nearby Edvard Grieg and Ivar Aasen development

projects. The Gina Krog jacket was installed in June 2015 and pre-drilling

commenced in July 2015 using the Maersk Integrator jack-up rig. The Gina Krog

oil will be transported to a storage vessel (FSU) with a capacity of 850,000

barrels for off-loading to shuttle tankers. The rich gas will be transported to

Sleipner for processing and onto Gassled for export. Condensate and NGL will be

exported via Sleipner to Karsto, in Norway.

    Sequa Petroleum N.V., Registered at the Dutch Chamber of Commerce No.

58633618 with a Corporate Seat in Amsterdam.

    UK Company No. FC031530, UK Establishment No. BR016598

    Contacts:

    Jacob Broekhuijsen - CEO

    Carol Frost - Director HR & Communication

    +44(0)203-728-4450

    info@sequa-petroleum.com

    SOURCE: Sequa Petroleum N.V.