M&As this week: Royal Dutch Shell, Viking Energy Group, SandRidge Energy

Royal Dutch Shell, through its subsidiary Shell Energy Holdings Australia, has agreed to pay $2.67bn for the acquisition of the remaining 13.28% stake in Woodside Petroleum.

The stake sale has been upsized from 8.5% to 13.28% and the transaction involves the sale of 111.8 million shares of Shell, at a price of $23.81 a share.

Woodside Petroleum’s proved and probable reserves as of 31 December 2016 were estimated to be 1,442.4 million metric barrels of oil equivalent (mmboe). Its production during the third quarter, ending September 2017, was 22.18mmboe.

Viking Energy Group has agreed to acquire the entire issued and outstanding membership units of an oil and gas company from Black Rhino.

The transaction involves an initial cash payment of $3m and issuance of additional two million shares to Black Rhino and endowment of a 1.5% overriding royalty interest on all-existing oil and gas leases and the newly identified and drilled wells of the target company.

The target company holds working interest in multiple oil and gas fields across an area of 11,629 gross acres in Texas, Louisiana and Mississippi, US.

The net production from the fields is estimated to be approximately 350boed.

Scheduled for completion on or before 22 December, the transaction will allow Viking Energy to extend its business operations.

SandRidge Energy has agreed to acquire the entire outstanding shares of Bonanza Creek Energy for a purchase consideration of $746m.

The transaction will be completed by SandRidge through a cash payment of $398m and issuance of 18.89 million shares. It will involve the payment of $36 a share to Bonanza Creek shareholders.

The target company’s assets include approximately 67,000 net acres in the Denver-Julesburg Basin of Colorado, and midstream infrastructure assets.

The company produced approximately 15.8mmboed during the third quarter of 2017.

SandRidge has appointed Morgan Stanley & Co. as financial advisor and Vinson & Elkins as legal advisor for the transaction.

Scheduled for completion in the first quarter of 2018, the transaction will allow SandRidge Energy to strengthen its existing assets portfolio in Denver-Julesburg Basin of Colorado.

The Government of Jamaica has unveiled its plans to acquire the remaining 49% stake in Petrojam from Petroleos de Venezuela, S.A. (PDVSA).

Petrojam operates a 35,000bpd hydro-skimming refinery, which produces automotive diesel oil, heavy fuel oil, jet fuel, liquid petroleum gas, asphalt and petrol.

The Jamaican Government previously disposed its 49% stake in Petrojam to PDV Caribe S.A., a subsidiary of PDVSA, in 2016.

Petrojam will be wholly owned by the Government of Jamaica, upon completion of the transaction.