Canada’s Vermilion Energy Inc. will acquire interests in several production and exploration assets in Germany’s North German Basin from Engie E&P Deutschland GmbH for 33 million euros, or US$47.9 million, the company said June 28.
Vermilion will acquire the interests through its wholly owned subsidiary under a definitive purchase and sale agreement.
The acquisition includes operated and non-operated interests in five oil-producing and three gas-producing fields, and one operated interest in one exploration license.
The acquisition also includes a 50% operated interest in a 190-kilometer oil pipeline network and a 66.7% operated interest in the Bedekaspel exploration license located in the Permian Rotliegend gas fairway, adding to Vermilion's existing 16.7% interest.
The assets Vermilion will acquire are forecast to produce about 2,000 barrels of oil per day (Mboe/d) in 2016, 50% oil. Proved plus probable reserves are estimated at 9.2 MMboe, 74% proved developed producing, based on an independent evaluation by GLJ Petroleum Consultants Ltd.
The transaction metrics are estimated at about US$24,000 per boe per day and $5.86/boe of proved plus probable reserves.
Vermilion will become the operator of six of the eight producing fields, with the other fields operated by ExxonMobil Production Deutschland (EMPG) and Deutsche Erdoel AG (DEA).
The acquisition’s effective date is Jan. 1, and it is anticipated to close late in the fourth quarter of 2016.
Vermilion entered Germany in early 2014 through the acquisition of a 25% nonoperating interest in a four-partner consortium.
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