DEC.27/12 VET acquire ZAZA shares,
Mr. Lorenzo Donadeo reports
VERMILION ENERGY INC. CLOSES ACQUISITION OF ZAZA ENERGY FRANCE
Vermilion Energy Inc. has completed its previously announced transaction with ZaZa Energy Corp. whereby Vermilion, through its wholly owned subsidiaries, has acquired 100 per cent of the shares of ZaZa Energy France SAS. ZEF's operating interests cover approximately 24,300 acres with 100% working interests in the Saint Firmin, Chateaurenard, Courtenay, Chuelles, and Charmottes fields in the Paris Basin. Current production is approximately 850 bbl/d of light Brent-based crude oil (approximately 27AdegreeAPI). Proved plus probable developed producing reserves(1) at December 31, 2012, as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ"), were estimated to be approximately 6.3 million boe with a reserve life index of over 20 years, reflecting the low decline rates of the acquired assets.
Taking into consideration an effective date for the Acquisition of October 1, 2012 and customary closing adjustments, Vermilion paid approximately US$76 million cash at closing of the Acquisition, including working capital. Resulting acquisition metrics reflect a cash cost of approximately US$90,000 per boe/d and US$12.26 per boe of proved plus probable developed producing reserve