news


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 SIGNING OF SPA FOR ACQUISITION OF CIECO EXPLORATION & PRODUCTION (UK) LIMITED


September 20, 2018

Verus Petroleum has announced today 20 September 2018, that it has signed a Sale & Purchase Agreement (SPA) for the acquisition of Cieco Exploration & Production (UK) Limited, a wholly owned subsidiary of ITOCHU Corporation.

The consideration is $400 million (USD) with an economic date of 1 January 2018.

The acquisition includes a 23.1% interest in the Western Isles Development Project, a 25.8% interest in the Hudson field, a 2.0% interest in the Brent Pipeline System, and a 1.2% interest in the Sullom Voe oil terminal.

The acquisition will add approximately 11,000 barrels of oil equivalent per day (boepd) to Verus’ daily production. The acquired entity is an asset holding company and does not involve the transfer of any personnel.

The transaction will be funded by a combination of equity, existing cash reserves and debt. Equity will be provided by HitecVision, the majority owner of Verus. Verus’ leading lender Nedbank Limited supports the transaction and the existing Reserves Based Lending (RBL) Facility will be increased and amended to allow for the participation of a group of additional banks who are also supportive of the transaction.

Alan Curran, Chief Executive of Verus Petroleum commented:

“Verus is pleased to have signed this SPA with ITOCHU, which is aligned with our strategy to expand our production base and cash flow through the acquisition of high quality production assets. We are delighted to acquire high value barrels with the Western Isles production in particular having very low lifting costs and being a long-life asset with strong cash generation.

“This transaction builds on our Boa oil field acquisition in 2017, and our acquisition of interests in the Alba oil field and the Babbage gas field earlier this year. The combined Alba, Babbage and Cieco acquisitions increase our net production to around 18,000 boepd.

“The Western Isles development includes the Harris and Barra oil fields. Production has exceeded expectations since it started in November 2017 and is currently on plateau at in excess of 40,000 boepd, with an estimated field life of 15 years.

“HitecVision’s continued support provides Verus with a solid capital base which is a robust foundation for further growth.”

The transaction is subject to customary regulatory approvals and is expected to complete in the fourth quarter of 2018.

In support of its growing business, Verus is relocating to new offices in the Silver Fin building on Aberdeen’s Union Street later this year. The move will allow Verus to bring its team together in a modern, open plan working environment that will support the ongoing expansion of its business, and further demonstrates its commitment to Aberdeen and the North Sea.

VERUS ANNOUNCES SIGNING OF SPA FOR ACQUISITION OF OPERATED INTEREST IN THE BABBAGE GAS FIELD FROM PREMIER OIL


April 30, 2018

Verus Petroleum is pleased to announce the signing of a Sale & Purchase Agreement (SPA) for the acquisition of a 47% operated interest in the Babbage gas field from Premier Oil. The consideration is £45.9 million with an economic date of 1 January 2018. This acquisition adds approximately 2,400 boepd to Verus’s daily production. The Babbage field is located in the Southern North Sea.

Verus will also acquire 50% operated interests in Licences P.2212, P.2290 and P.2301, adjacent to Babbage. Verus plan to drill a well in 2019 to prove additional gas volumes which could be tied back to Babbage some 10kms away.

The transaction will be funded by a combination of debt and existing cash. Verus’s existing lender Nedbank Limited supports the transaction and the existing Reserves Based Lending (RBL) Facility will be increased and amended 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 this SPA with Premier Oil. This transaction builds upon our Boa acquisition last year, the drilling of two infill wells at Boa and our recently announced acquisition of an interest in the Alba field. The combined Alba and Babbage acquisitions increases our net production to more than 8,700 boepd and our reserves to nearly 24 MMboe. The transactions are consistent with the Verus strategy of expanding our production base and cash flow. Boa, Alba and Babbage are all long life assets with strong cash generation. As part of this transaction Verus intend to become the Babbage Operator which is a strategically important step for the company.”

The transaction is subject to the satisfaction or waiver of a number of conditions including pre-emption and operatorship rights of existing joint venture partners and regulatory approvals and is expected to complete in the fourth quarter of 2018.

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 SIGNING OF SPA FOR ACQUISITION OF NON-OPERATED INTEREST IN THE ALBA OIL FIELD FROM STATOIL


April 27, 2018

Verus Petroleum is pleased to announce the signing of a Sale & Purchase Agreement (SPA) for the acquisition of a 17% non-operated interest in the Alba oil field from Statoil. This acquisition adds approximately 2,700 boepd to Verus’s daily production. Statoil will retain their liability for the decommissioning cost of the existing Alba facilities and Verus will be liable for the decommissioning costs of any new Alba facilities. The Alba field is located in the Central North Sea.

The transaction will be funded by a combination of debt and existing cash. Verus’s existing lender Nedbank Limited supports the transaction and the existing Reserves Based Lending (RBL) Facility will be increased and amended 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 this SPA with Statoil. This transaction builds upon our Boa acquisition, which we completed last year and our successful Boa infill well drilling program. The addition of the Alba asset materially increases our net production to ~6,300 boepd and our reserves from 6.5 to 16 MMboe. The transaction is consistent with the Verus strategy of expanding our production base and cash flow. Both Boa and Alba are 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 of existing joint venture partners and regulatory approvals and is expected to complete in the middle of 2018.

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.”

VERUS ANNOUNCES ACQUISITION OF ADDITIONAL INTEREST IN BOA OIL FIELD


October 20, 2016

Verus Petroleum is pleased to announce the signing of a sale and purchase agreement with Maersk Oil North Sea UK Limited for the acquisition of Maersk Oil’s 9.8% interest in the Boa oil field. This acquisition will increase Verus’s interest in the Boa field to 11.35% and adds approximately 1,800 boepd to Verus’s daily production. The Boa field is a median line field and with this transaction Verus will hold 100% of the UK portion. The Boa field is developed with 4 subsea wells tied back to the Alvheim FPSO which is located on the Norwegian side of the median line.

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

“This 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 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 SALE OF VULCAN SATELLITE DISCOVERIES


June 10, 2016

Verus Petroleum are pleased to announce the signature of a sale and purchase agreement (SPA) with Independent Oil and Gas plc for the sale of its interests in the Vulcan satellite gas fields (Vulcan East, Vulcan North West and Vulcan South).

Verus is focused on the creation of value through the acquisition of high quality production assets and, ultimately, through development.

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

“The sale of these discoveries to IOG is consistent with the Verus strategy to focus initially on expanding our portfolio of quality producing assets before investing in development projects. This transaction helps bring our portfolio of assets in line with our business plan. We wish IOG success in the development of these fields.”

VERUS ANNOUNCES DEAL WITH CLUFF NATURAL RESOURCES.


May 10, 2016

Verus Petroleum are pleased to announce the conclusion of a sale and purchase agreement (SPA) and exclusive option agreements (Options) with Cluff Natural Resources.  Under the SPA and Options, Cluff will acquire an initial 5% share from Verus in the Fynn & Penny exploration licences in the Outer Moray Firth with options to acquire the remaining 20% in Fynn & Penny and all of Verus’ 25% stake in the Central North Sea exploration licence at Skerryvore.

Verus is focused on the creation of value through the acquisition of high quality production assets and, ultimately, through development.

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

“The transaction between Verus and Cluff aligns these attractive exploration licences with the business drivers of both companies and we wish Cluff every success in their exploration programme.  From the beginning of the Verus journey we have focused on bringing our portfolio of assets in line with our business plan and this deal moves us significantly along that path.  We see tremendous opportunity to grow a successful UKCS business in the prevailing industry conditions”