Canada-based Vermilion Energy has completed its acquisition of working interests in six French oil-producing fields from Total E&P France. The fields are the Itteville, Vert Le Grand, Vert Le Petit, La Croix Blanche and Dommartin-Lettree fields in the Paris Basin, and the Vic Bilh field in the Aquitaine Basin.
The assets will average 2,200 barrels of oil equivalent a day in 2012, weighted 86% to high quality Brent-based crude, and have an estimated 6.7 million barrels of oil equivalent of proved and probable reserves (96% crude oil).
Vermilion paid $108m cash at closing of the transaction, taking into consideration an effective date of 1 January 2011 and customary closing adjustments.
Following completion of the acquisition, Vermilion said that it would continue to maintain considerable financial flexibility with C$640m ($633.2m) of remaining borrowing capacity. The acquisition is part of the company's strategy to maintain and consolidate its core operating areas, and own and operate 100% of its properties.
Vermilion had previously held non-operated working interests in the Itteville, Vert Le Grand and Vic Bilh fields; with the acquisition of Total's interests, the company now holds a 100% operated working interest in each field.
Vermilion recently acquired 100% stakes in the Vert-le-Petit and La Croix Blanche fields from Total. It also holds a 56% non-operated interest in the Dommartin-Lettree field.