Vermilion Energy completes acquisition of German assets

Vermilion Energy has completed the acquisition of interests in Engie E&P Deutschland production and exploration assets located in Germany.

The acquisition carried a consideration of €33m based on the effective date of 1 January.

After the clash flow adjustment between the effective date and closing date, the final consideration is estimated to be reduced to €28.3m.

The completed acquisition comprises operated and non-operated interests in five oil and three gas producing fields. It also includes an operated interest in one exploration licence.

Following the completion of this acquisition, Vermilion will gain operatorship of six fields from eight locations.

The two other fields will be operated by ExxonMobil Production Deutschland and Deutsche Erdoel.

The acquired assets produced at an average of 2,000 barrels of oil equivalent per day this year until October, 51% of which was oil.

Vermilion Energy intends to increase the production by nearly 10% next year on the basis of budgeted capital investment at €3.6m.

Utilising the current forward strip, Vermilion Energy predicts an approximately €17.6m fund flow from the operations of these acquired assets in 2017.

The acquired properties are the first of its kind for Vermilion Energy in Germany. The company expects it will strengthen its plan to develop a material business unit in this country. 

Vermilion Energy stated that the acquired assets are expected to offer similar subsurface characteristics, extending its European portfolio.

Germany has a consistent fiscal framework with political stability that complements its long history of oil and gas development.

Vermilion Energy is an international energy producer that owns producing properties in Europe, Australia and North America.