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Vermilion Energy Inc. Announces Acquisition of Producing Properties in Germany
Vermilion Energy Inc. Announces Acquisition of Producing Properties in Germany Ver...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nVermilion Energy Inc. Announces Acquisition of Producing Properties in Germany\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntal{\nTEXT-ALIGN: LEFT\n}\n\n\n\n\n\n\nVermilion Energy Inc. Announces Acquisition of Producing Properties in Germany\nCanada NewsWire\nCALGARY, June 28, 2016\n\n\n\nCALGARY, June 28, 2016 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", the \"Company\", \"We\" or \"Our\") (TSX, NYSE: VET) has entered into a definitive purchase and sale agreement whereby Vermilion, through its wholly owned subsidiary, will acquire interests in several production and exploration assets in Germany (the \"Acquisition\") from Engie E&P Deutschland GmbH, for total consideration of €33 million ($47.9 million). The Acquisition has an effective date of January 1, 2016 and is anticipated to close in late Q4 2016, subject to customary closing adjustments. Vermilion will fund the Acquisition through existing credit facilities.\n\nThe 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\"). The Assets are located within the prolific North German Basin in northwest Germany and are forecasted to produce approximately 2,000 boe/d in 2016 (50% oil). Proved plus probable reserves are estimated at 9.2 million boe(1) (74% proved developed producing(1)) based on an independent evaluation by GLJ Petroleum Consultants Ltd. with an effective date of December 31, 2015. The transaction metrics are estimated at approximately $24,000 per boe per day, $5.86 per boe of proved plus probable reserves(1) including future development capital (generating a 2P recycle ratio of 3.5 times based on projected 2016 netbacks), and 3.1 times estimated 2016 operating cash flow(2) using the current forward commodity strip. The Acquisition is expected to be accretive for all pertinent per share metrics including production, fund flows from operations(2), reserves and net asset value.\n\nVermilion will assume operatorship of six of the eight producing fields, with the other fi...