Verenex Sells Producing Assets in France
Verenex Energy's subsidiary, Vermilion Exploration SAS ("VEX"), has entered into an agreement with Vermilion Rep SAS ("VREP"), a French subsidiary of Vermilion Energy Trust, for the sale of its 95% participating interest in the Marvilliers Permit, including the St. Lazare 2H well, and two drilling spacing units in the Parentis Permit, including the Parentis 222H well, located in France for CAD $3.5 million. VREP holds the remaining 5% interest in these lands and wells.
VEX produces approximately 65 barrels of oil per day (net) from the two wells, has the right to drill an additional well on the Parentis Permit and holds a participating interest in 46,481 acres (net) of land in the Marvilliers Permit.
VEX will retain its current 50% participating interest in the offshore Aquitaine Maritime exploration permit in the Bay of Biscay and participating interests ranging from 31.67% to 95% in three other onshore exploration permits in the Paris Basin.
The transaction is subject to the parties entering into a definitive sale and purchase agreement which is subject to all conditions precedent, including the receipt of all necessary regulatory approvals.
"The sale of these small producing assets will provide cash to redeploy to high impact exploration activities in Libya and offshore France", said Jim McFarland, President and CEO. "The transaction is timely since our capital investment program is ramping-up with the start of our exploration drilling program in Libya at the end of September 2006."
Verenex is a Canada-based, international oil and gas exploration and
production company with a world-class exploration portfolio in Libya and the
Bay of Biscay offshore France.
- Marathon Struggles to Exit Libya as Unrest Grows (Oct 25)
- Verenex Completes Arrangement with Libyan Investment Authority (Dec 21)
- Verenex Updates on Acquisition Status (Dec 15)