Vermilion Energy acquires producing properties in Germany

CALGARY, Alberta -- Vermilion Energy has entered into a definitive purchase and sale agreement whereby the company, through its wholly owned subsidiary, will acquire interests in several production and exploration assets in Germany from Engie E&P Deutschland GmbH, for a total consideration of ‎€33 million ($47.9 million).

The acquisition has an effective date of Jan. 1, 2016, and is anticipated to close late in the fourth quarter. Vermilion will fund the acquisition through existing credit facilities.

The acquisition includes operated and non-operated interests in five oil and three gas producing fields, along with an operated interest in one exploration license. The assets are located within the prolific North German basin in northwest Germany and are expected to produce approximately 2,000 boed in 2016 (50% oil). 

Proved plus probable reserves are estimated at 9.2 MMboe based on an independent evaluation by GLJ Petroleum Consultants Ltd. with an effective date of Dec. 31, 2015.

Vermilion will assume operatorship of six of the eight producing fields, with the other fields operated by Exxon Mobil Production Deutschland (EMPG) and Deutsche Erdoel AG (DEA). The acquisition also includes a 50% operated interest in a 190-km 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.