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 four 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, Alan Curran, Chief Executive of Verus Petroleum 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.