Purchase and sale agreements have been entered into between Vermilion Energy Inc. and Total E&P France where Vermilion will acquire six producing fields in the Paris and Aquitaine basins in France. The assets will consist of operated interests in the Itteville, Vert Le Grand, Vert Le Petit, La Croix Blanche, Dommartin-Lettree and Vic Bilh fields.
Having held the remaining non-operated working interests in three of these fields, Vermilion will have 100% operated working interest in the majority of the fields upon acquisition. The cash to close the acquisition is estimated at C$115 million, based on the expected 2200boe daily production weighted 86% to high quality Brent based crude and 6.7million boe of proved plus probable reserves estimated for 2012.
These estimates reflect a per boepd cash cost of C$52,000 and per boe cost of proved plus probably reserves evaluated at C$17.21. Vermilion will maintain flexibility financially upon closing of the acquisition, with remaining borrowing capacity of C$650 million and a net debt of 1.0 times to fund flows ratio.