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Vermilion Energy Inc. Closes Acquisition of Producing Properties in Germany
Vermilion Energy Inc. Closes Acquisition of Producing Properties in Germany Canada...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nVermilion Energy Inc. Closes 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\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Dec. 19, 2016\n\n\n\nCALGARY, Dec. 19, 2016 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", \"We\" or \"Our\") (TSX, NYSE: VET) is pleased to announce that we have completed the previously announced acquisition of interests in production and exploration assets in Germany (the \"Acquisition\") from Engie E&P Deutschland GmbH, for total consideration of €33 million ($46.2 million), based on the effective date of January 1, 2016.  After adjustments for cash flows between the effective date and closing date, Vermilion's cash cost for the Acquisition is projected to be approximately €28.3 million ($39.6 million). \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\").  Vermilion will assume operatorship of six of the eight producing fields, with the other fields operated by ExxonMobil Production Deutschland (EMPG) and Deutsche Erdoel AG (DEA).  \n\nProduction from the Assets has averaged 2,000 boe/d (51% oil) in 2016 through the end of October.  We expect to increase production by approximately 10% in 2017 based on budgeted capital investment of €3.6 million ($5.1 million).  Using the current forward strip, we forecast fund flows from operations(1) of approximately €17.6 million ($24.9 million) from the Assets in 2017. \n\nThe Acquisition provides us with our first operated producing properties in Germany, and advances our objective of developing a material business unit in this country.  Germany has a long history of oil and natural gas development, and a consistent fiscal framework with low political risk. The Assets are expected to be complementary with our existing European portfolio, offering similar subsurface characteristics and development opportunities.\n\nAbout Vermilion\n\nVermilion is an international energy produce...