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VERUS ANNOUNCES SIGNING OF SPA FOR ACQUISITION OF NON-OPERATED INTEREST IN THE WYTCH FARM OILFIELD FROM PREMIER OIL


September 12, 2017

Verus Petroleum is pleased to announce the signing of a Sale & Purchase Agreement (SPA) for the acquisition of a 33.8% interest in the Wytch Farm oil field from Premier Oil. This acquisition adds approximately 5,000 boepd to Verus’s daily production. The Wytch Farm field is located on the south coast of England.

The transaction will be funded by a combination of equity and debt. Verus’s existing lender Nedbank Limited supports the transaction and the existing Reserves Based Lending (RBL) Facility will be amended to increase the facility amount to USD 300 million and to allow for the participation of several additional banks who are also supportive of the transaction.

Commenting on the deal, Verus’s CEO Alan Curran said:

“Verus is pleased to have signed the SPA with Premier Oil. This transaction builds upon our Boa acquisition earlier this year and materially increases our net production to around 7,000 boepd and reserves to approximately 26mmboe. The transaction is consistent with the Verus strategy of expanding our production base and cash flow. Both Boa and Wytch Farm are high quality, low cost, long life assets with strong cash generation. Verus will look to reinvest this cash flow in further production and development opportunities.”

The transaction is subject to the satisfaction or waiver of a number of conditions including Premier shareholder approval, pre-emption rights of existing joint venture partners and regulatory approvals and is expected to complete by the end of 2017.

Backed by Europe’s leading upstream private equity company HitecVision, Verus is focused on the creation of value through the acquisition of high quality production assets and, over time, through increased exposure to development projects.

VERUS ANNOUNCES COMPLETION OF ACQUISITION OF ADDITIONAL INTEREST IN BOA OIL FIELD AND NEW RBL


January 31, 2017

Verus Petroleum is pleased to announce the Completion of its acquisition of Maersk Oil’s 9.8% interest in the Boa oil field. This acquisition increases Verus’s interest in the Boa field to 11.35% and adds approximately 1,500 boepd to Verus’s daily production. The Boa field is a median line field and with this transaction Verus now holds 100% of the UK portion. The Boa field is developed with 4 subsea wells tied back to the Alvheim FPSO, located on the Norwegian side of the median line. Further development drilling is planned in 2017 which is expected to increase Verus’s share of production to around 2,500 boepd in 2018.

Verus is also pleased to announce that it has entered into a Reserves Based Lending (RBL) facility of up to $150 million with Nedbank Limited.

The transaction has been funded by a combination of equity and a drawdown from the RBL facility.

Commenting on the deal, Verus’s CEO Alan Curran said:

“Verus is pleased to have completed the Boa transaction and to have put in place the RBL to support this and future transactions. The Boa acquisition is consistent with the Verus strategy of expanding our production base and cash flow. After two years of working through the industry downturn this milestone acquisition trebles the company’s production and, together with the RBL facility, sets us up for further deals over the coming months.”

Verus is focused on the creation of value through the acquisition of high quality production assets and, over time, through increased exposure to development projects.

VERUS ANNOUNCES COMPLETION OF SALE OF VULCAN SATELLITE DISCOVERIES


October 28, 2016

Verus Petroleum are pleased to announce the completion of the sale of its interests in the Vulcan satellite gas fields (Vulcan East, Vulcan North West and Vulcan South) to Independent Oil and Gas plc.

Verus is focused on the creation of value through the acquisition of production assets and, ultimately, through development.
Commenting on the deal, Verus’ CEO Alan Curran said:

“The completion of the sale of these discoveries to IOG is an important further step in re-shaping our portfolio consistent with the Verus strategy to focus initially on building a portfolio of quality producing assets before investing in development opportunities. This transaction is also aligned with the OGA objective of “getting the right assets into the right hands”. We wish IOG success in the development of these fields.”