Hague and London Oil Plc (HALO), as part of its portfolio restructuring, is pleased to announce that it has, through its subsidiary Hague and London Oil B.V., signed a Memorandum of Understanding (MoU) with ENGIE Global Energy Management (“ENGIE”) to co-operate on the acquisition by HALO of natural gas production and reserves within Europe.
Under the MoU, HALO will contribute its upstream and commercial capabilities to target, acquire and manage specific low risk natural gas production assets in Europe.
ENGIE will contribute its substantial footprint in European gas markets and its expertise in energy management to offer an innovatively structured gas off-take, designed to help HALO secure the funding of such assets whilst minimising the dilution to HALO’s shareholders.
Andrew Cochran, Chairman of HALO, said:
“This relationship is a major step in Halo’s implementation of its recently revised strategy and shows our commitment to repositioning the company by changing the risk profile of the business. The MoU with a major, diversified and established utility like ENGIE strengthens our ability to focus on near-term or producing assets in Europe where many lower cost opportunities exist today. This is a unique agreement that will provide asset sellers with an integrated buyer’s package both reducing risk and improving access to finance for natural gas assets in Europe. Halo is pleased to be recognised by an entity such as ENGIE to be a nimble upstream partner with the expertise to build a stable and secure European natural gas portfolio.”
Mircea Caratas, CCO of ENGIE Global Energy Management, said:
“This MoU is significant for us as it marks an innovative development in our product offering. For the first time, we are able to marry our Group’s E&P knowledge with the ability to manage commodity price risk in order to access hydrocarbons, at the same time helping HALO to raise money for acquisitions in the mature European gas basins.”
Both parties have initiated their activities and have already made solid progress. While such an arrangement is not exclusive, the parties have agreed that HALO will provide ENGIE with a first look at all projects it pursues which fit the description of assets sought within this MoU.