1st Oct 2013 09:32
LONDON (Alliance News) - Northern Petroleum PLC Monday said it has entered into a binding sale and purchase agreement with a subsidiary of Vermilion Energy Incorporated for the sale of Northern Petroleum Nederland BV, its Netherlands operating subsidiary, for USD27.5 million in cash.
Through the deal with Vermilion Oil & Gas Netherlands BV, Northern Petroleum will also receive a 20% interest share in any net operating profit generated from Vermilion's Papekop oil and gas discovery, if it is developed and brought into production.
It will also receive a net profit interest over any future production from unconventional reservoirs.
"The assets in the Netherlands have served the group well in providing cash inflow over the last six years, but the time is now right to conclude a sale," Northern Petroleum Chief Executive, Keith Bush, said in a statement.
"Our attention will now turn to realising some of the significant latent value held within the
company's Southern Adriatic licences and the testing of our redevelopment play
in Canada," he added.
The stock was trading at 36.59 pence Tuesday morning, up 1.11% or 3.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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