Tenaz Closes Acquisition of NOBV, Widens Q1 Net Loss

Tenaz Energy Corp. has completed the acquisition of 100 percent of the shares of NAM Offshore B.V. (NOBV) from Nederlandse Aardolie Maatschappij B.V., a joint venture between Shell PLC and ExxonMobil Corporation.

Tenaz has assumed the operatorship of NOBV, the company said in a news release. NOBV has been renamed Tenaz Energy Netherlands B.V. (TEN).

The base consideration for the transaction was EUR 165 million, prior to closing adjustments and contingent payments, according to an earlier statement. The transaction has an effective date of January 1, 2024. The acquired assets include substantially all of NAM’s offshore exploration and production business, including associated pipeline infrastructure and onshore processing in the Netherlands. The acquisition does not include NAM’s assets in the Ameland area.

As a result of free cash flow and other purchase price adjustments from the effective date of January 1, 2024 until May 1, 2025, Tenaz received approximately EUR 15 million cash at closing, the company said.

The acquired assets produced approximately 11,000 barrels of oil equivalent per day (boepd), consisting of 99 percent natural gas, for the first four months of 2025. Production for full-year 2025, including both the four-month pre-closing and eight-month post-closing periods, is expected to be approximately 10,000 boepd, the company said.

Tenaz said it plans to invest $55 million to $61 million in the acquired assets for the remainder of 2025, with production benefits beginning primarily in 2026. Approximately 75 percent of the capital expenditures for the acquired assets will fund drilling and workover activities, with the remainder for facilities projects and maintenance capital.

Tenaz updated its production and capital guidance reflecting its expected contribution for the eight-month period following closing. On an annual average basis for 2025, TEN will add approximately 6,100 to 6,400 boepd to its annual guidance range, resulting in updated guidance of 9,000 to 9,500 boepd, the company stated.

First-Quarter Results

For the first quarter, the company’s production volumes averaged 2,893 boepd, up 3 percent from the previous quarter, reflecting lower downtime from its non-operated assets in the Netherlands and initial contributions from Canadian drilling, Tenaz said in a recent earnings release.

Tenaz said it drilled three gross wells in Canada, which produced at an initial net rate of approximately 870 boepd, consisting of 45 percent crude oil.

Tenaz reported a net loss for the quarter of $5.3 million, or $0.19 per share, compared with a net loss of $0.5 million, or $0.02 per share a year ago. The increase in net loss was primarily driven by interest expense for the senior notes issued in the fourth quarter of 2024 and transaction costs for the acquisition, the company said.

Tenaz President and CEO Anthony Marino said, “TEN is the entity that will execute our corporate vision in the Dutch North Sea. This region offers many opportunities to deliver safe, secure and low-emission energy for Europe in an era of persistent supply uncertainty. The Dutch government is reinforcing its commitment to accelerate responsible natural gas development in the DNS. The recent sector agreement between the offshore gas industry and the Ministry of Climate and Green Growth marks a key step in unlocking the region’s full gas potential. By streamlining approval processes and fostering industry-government collaboration, the agreement paves the way for more efficient and accelerated development of critical energy resources, enhancing both economic growth and energy security”.

“Prior to the acquisition, NOBV had a low level of capital activity. Our objective is to ramp up investment as rapidly as is efficient and practicable, while maintaining our top priority of safe operation. We recognize that the more capital-intensive activities such as drilling and barge-based workovers have a significant lead time for final design, permitting and contracting. During the transition period, Tenaz conducted preparatory work for the optimization and development program initially identified during our evaluation of the acquired assets. We are now conducting a tender process for key services including barges, drilling services and long-lead materials,” Marino continued.

“Our aspiration is to commence these activities in [the fourth quarter], including the spudding of the first well on our [Dutch North Sea] operated assets. Subject to rig availability and permitting timelines, we intend to execute a multi-well drilling campaign targeting production growth in 2026 and beyond. Our infrastructure, including both offshore platforms and onshore processing, is generally underutilized. We have a number of technically-mature drilling prospects which, if successful, could generate production growth with minimal incremental infrastructure investment,” he said.

To contact the author, email rocky.teodoro@rigzone.com

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.