Economic Report 2017

E C ONOM IC R E P OR T 2 0 1 7

Siccar Point Energy

The company ^iccar Woint nergy ǁas estaďlished in 201ϰ ǁith the aim oĨ ďuilding a leading UK indeƉendent, Ĩull cycle, edžƉloration, deǀeloƉment and Ɖroduction comƉany͘ Its strategy is to ďuild a ƉortĨolio oĨ assets ǁhere it can use it s e x t e nsiv e Nor t h Se a e x p e r ie nce t o cr e at e v alue t h r ough follow - on inv e st m e nt and gr ow reserǀes through inĨill drilling, liĨe edžtension, neǁ deǀeloƉments or edžƉloration͘ The ďusiness noǁ includes interests in three oĨ the largest UK assets ďy remaining reserǀes ;^chiehallion, Dariner and ZoseďanŬͿ, as ǁell as a ƉortĨolio oĨ additional material deǀeloƉment and edžƉloration oƉƉortunities, many oĨ them oƉerated͘ tith around ϰ00 million ďoe oĨ discoǀered resources, it is the seǀenth largest resource holder on the UK ^, has one oĨ the largest resource holdings in the ǁest oĨ ^hetlands, and a Ɖroduction ƉroĨile through to the 20ϱ0s͘ Details of the investment ^iccar Woint nergy comƉleted tǁo signiĨicant acƋuisitions during the last 12 months͘ &irstly, an interest in the Dariner Ĩield, and then in :anuary this year, it acƋuired Austrian national oil comƉany ODs͛s entire UK b usine ss. How is the company financed? The comƉany is Ĩinanced through a comďination oĨ Ĩunds Ĩrom shareholders, lue tater nergy and lacŬstone nergy Wartners, as ǁell as a Zeserǀes ased Loan Ĩrom a syndicate oĨ leading international b anks. &ounded in 2011, lue tater nergy is a gloďal, middle marŬet energy Ɖriǀate eƋuity Ĩirm ďased in London͘ The Ĩirm Ɖrimarily targets Ɖriǀate eƋuity inǀestments in the gloďal energy suƉƉly chain, ǁhile Ɖartnering w it h m anage m e nt t e am s and using a ne t w or k of inv e st m e nt and op e r at ing p r ofe ssionals. Blackst one E ne r gy P ar t ne r s h as a r e cor d b uilt on it s indust r y e x p e r t ise and p ar t ne r sh ip s w it h m anage m e nt teams͘ It has inǀested oǀer Ψϴ ďillion oĨ eƋuity gloďally across a ďroad range oĨ sectors ǁithin the e ne r gy indust r y . Why is the UK an attractive place to invest? T h e r e is st ill sub st ant ial p ot e nt ial in t h e UKC S and Siccar P oint ’ s p or t folio is ge ogr ap h ically focuse d on w h e r e it se e s t h e gr e at e st gr ow t h p ot e nt ial and longe v it y . T h is com b ine d w it h a r e lat iv e ly st ab le and low r isk p olit ical clim at e h as cle ar ly de m onst r at e d t h at glob al cap it al can b e at t r act e d t o t h e r e gion. What are the next steps? &olloǁing the ODs deal comƉletion in :anuary, the comƉany has Ĩully integrated ďoth ďusinesses and locat e d t h e w h ole t e am in A b e r de e n. T h e com p any is going t h r ough a r ap id gr ow t h p h ase w it h Sch ie h allion r e ce nt ly r e t ur ning t o p r oduct ion and M ar ine r due t o com m e nce p r oduct ion in 2018 . T h e com p any w ill ďe inǀesting around Ψϱ00 million oǀer the nedžt tǁo years in these oƉƉortunities, as ǁell as Ɖrogressing addit ional gr ow t h op p or t unit ie s in t h e p or t folio. T h e se include dr illing an ap p r aisal w e ll in C am b o in 2018 Ɖrior to deǀeloƉment sanction͖ Ɖrogressing ZoseďanŬ to Ɖroũect sanction͖ and unlocŬing the Ɖotential oĨ it s e x p lor at ion p or t folio. t e t e x t e v e r t h e e x p e r e e t r e t e v e t h r h w - v e t m e t r w b e b w t h m e m e t t e m e t w r v e t m e t p e r t p r e t e E e r y P r t e r h r e r b t t t r y e x p e r t e p r t e r h p w t h m e m e t e e r y t r y T h e r e t b t t p t e t t h e C r P t ’ p r t e r p h y e w h e r e t e e t h e r e t e t r w t h p t e t e v t y T h m b e w t h r e t v e y t b e w r p t m t e h e r y e m t r t e t h t b p t b e t t r t e t t h e r e t e t h e w h e t e m A b e r e e T h e m p y t h r h r p r w t h p h e w t h h e h r e e t y r e t r t p r t M r e r e t m m e e p r t 8 T h e m p y w t r w t h p p r t t e t h e p r t T h e e e r p p r w e C m b 8 t e x p r t p r t

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