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CASE Corporate Finance and ABN AMRO acted as exclusive financial advisors to ENGIE E&P Deutschland on the sale of 13 oil and gas production assets and one exploration license in Germany to Vermilion Energy Inc.

June 29, 2016

ENGIE E&P Deutschland GmbH decided to divest its interests in 9 oil and 4 gas production assets and one exploration license in northwest Germany, and has reached an agreement with Vermilion Energy Inc. for a total consideration of EUR 33 million.

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. Proved plus probable reserves are estimated at 9.2 million boe (74% proved developed producing) based on an independent evaluation conducted by GLJ Petroleum Consultants Ltd. for Vermilion with an effective date of December 31, 2015.

Vermilion will assume a 100% operated interest in 5 of the 9 oil producing fields, with the remaining 4 oil producing fields operated by ExxonMobil Production Deutschland (EMPG) and Deutsche Erdoel AG (DEA). Vermilion will assume operatorship of 3 of the 4 natural gas producing fields, with the fourth gas field operated by EMPG.

Vermilion will also obtain a 50% operated interest in the HEG GmbH pipeline, which is jointly owned with EMPG, and includes a 190 km pipeline network that transports oil products from the field to the Misburg transfer station.

The acquisition also includes 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.

The structure of the transaction was in the form of an asset deal for the fields and share deal for the HEG pipeline.

CASE Corporate Finance and ABN AMRO acted as exclusive financial advisors to ENGIE E&P Deutschland on the sale’s process.