Viaro Energy (“Viaro”), the independent British energy company operating in the UKCS and the Netherlands North Sea, is pleased to announce that it has signed an SPA for the acquisition of Evoterra, the integrated transition energy company with onshore assets in the UK and Germany. The deal marks Viaro’s entry into the production of renewable energy, as well as the traditional energy market in Germany.
The deal will see Viaro acquire 100% of Evoterra’s assets, including its subsidiary MicroEnergy Generation Services Limited, which contains a wind turbine fleet located mainly in East Anglia, and subsidiary Terrain Energy, which operates one onshore oil and gas exploration licence in the Molasse basin in southern Germany and holds interests in four onshore oil and gas licenses in the UK.
Viaro’s entry into Germany will include a 100% working interest in the Mullheite commercial licence in the Molasse basin in Bavaria, south of Munich. There is proven Tertiary (Rupel) oil and gas on the licence and plans are underway to drill a well to evaluate the gas anomalies mapped out through a 3D seismic survey. The licence also holds prospectivity in the Holzkirchen area, which produced over 6 million barrels of oil per day prior to close of production, and where there is potential for a redevelopment of this reservoir.
Viaro will also acquire a non-operating stake in four onshore licenses in the UK, namely Whisby Oil Field and Duke’s Wood in East Midlands, as well as the Brockham and Lidsey oil fields in the Weald Basin. Viaro will work with the Operators of each of the licences to progress various opportunities to increase production at each of the sites and allow them to reach full potential.
At Whisby, plans are already underway to conduct workovers on two of the existing wells, with an infill well also being matured for execution in 2025. Duke’s Wood will be evaluated for geothermal potential, rather than further oil and gas production. At Brockham, production has been restored from one well following a successful workover earlier this year, with options being evaluated to restore production from a second well. The Lidsey oil field is currently shut-in, with the Operator evaluating options to restore production in early 2025.
With the acquisition of Evoterra’s wind turbine fleet, Viaro will assume ownership of 138 wind turbines which generate over 0.5GWh of clean energy per year. The electricity produced is sold to green energy partner Ecotricity, the first British energy company to offer green electricity to consumers. Being Viaro’s first foray into renewable energy production, the company will treat the acquisition as a pilot project to accumulate know-how and identify opportunities for the implementation of clean technologies with a long-term view of expanding its portfolio in this area.
This acquisition demonstrates Viaro’s commitment to a sustainable energy transition, adopting assets that support both short-term energy security through the exploitation of existing licences as well as the development of renewable energy production. With Viaro’s entry into the German energy market, the company seeks to diversify its portfolio at a time where political and fiscal context encumbers the UK oil and gas industry. The transaction is subject to regulatory approvals and expected to close in 2025.
Viaro Energy CEO Francesco Mazzagatti commented: “We were very pleased when the opportunity to acquire Evoterra presented itself, as it offers a great balance between tapping into our core strengths and diversifying our portfolio in a stable and contained manner. At a time when the traditional energy sector is exposed to rapid changes in exploration licencing policies and windfall taxation, investments in mature producing assets are becoming particularly important for the financial stability of energy producers – including from the perspective of energy security.
We also see great potential in Germany in this regard, where there have been a lot of productive discussions this year on how to revitalise the economy in light of increased energy costs and declining gas prices, while at the same time staying on track with transition goals. For us, the two have never been at odds with each other and we look forward to carrying out our strategic vision in what remains one of Western Europe’s most promising markets.
Pending results of our planned evaluations across Evoterra’s portfolio, we will consider the right investments in emission reduction technologies across the life cycle of traditional energy assets, as well as further diversification of activities into renewables.”