Neptune Energy Group (“Neptune”) announced that it has entered into a Sale and Purchase Agreement to acquire 100% of the shares of VNG Norge AS (“VNG Norge”) from VNG AG, the German natural gas wholesaler and energy service provider.

Acquisition detail:

- The VNG Norge portfolio provides a high-quality bolt-on acquisition in one of Neptune’s key jurisdictions, with a complementary set of assets in strategic locations including: the Greater Njord Area, with the operated asset of Fenja; and the North Sea / Utsira High area, with the addition of the Ivar Aasen asset.
- The proposed transaction is subject to approval by the Supervisory Board of VNG AG, as well as customary regulatory approvals, with completion expected in Q4 2018.

VNG Norge business highlights:

VNG Norge has built a portfolio of production, development and exploration assets on the Norwegian continental shelf which - includes the Fenja oil development and the Njord production hub.
- VNG Norge has a portfolio of 42 licences, five producing fields and three development projects including, in Norway: Fenja (30% and operator), Bauge (2.5%); and in Denmark: Solsort (13.8%).
- Net production for 2017 was an estimated 4,000 boepd with a significant ramp up by 2022 as new capacity comes onstream.
- Net reserves and resources as at 31 December 2017 of over 50 mmboe.

The VNG Norge asset base is highly complementary to Neptune’s existing Norwegian portfolio, consolidating its equity position in the greater Njord area with 22.5% in Njord as well as a 30% interest and the operatorship of the Fenja oil development project. Fenja is a sub-sea development which will be produced as a tie-back to the Njord production hub and is scheduled to come on stream in 2021.

Furthermore, VNG Norge's reputation, as a respected and highly competent operator and partner in Norway, is recognised and valued by Neptune and we believe the combination of both businesses creates a strong platform with a broad operating skills-set across sub-sea development, drilling, production and exploration.

Sam Laidlaw, Executive Chairman of Neptune Energy Group, said:
“We are extremely pleased to announce the signing of the SPA to acquire VNG Norge, which provides us with our first acquisition since the completion of our purchase of ENGIE E&P, and is directly in line with our strategy of consolidating our position in key jurisdictions with high quality and complementary assets.

“The addition of further long-life oil development opportunities in Norway, through one of our key production hubs, as well as adjacent production and exploration interests, is a further step towards delivering our ambition to create a leading international independent E&P company of significant scale.

“I am also pleased that VNG Norge will bring a strong team in Norway, that we aim to integrate with our existing business, to play a full part in the future growth and success of the Neptune Energy Group.”

About Neptune Energy Group

Neptune is an independent global E&P company and, having completed the acquisition of the exploration and production business of the ENGIE group in February 2018, is now active across the North Sea, North Africa and Asia Pacific. The business had production of 165,000 net barrels of oil equivalent per day during Q1 2018 and 2P reserves at 31st December 2017 of 542 million barrels of oil equivalent. The Company is backed by funds advised by three investors, CIC, The Carlyle Group and CVC Capital Partners.

In Norway, Neptune’s key interests are: Gjoa (30% and operator); Cara (30% and operator); Gudrun (25%); Njord (20%); Bauge (10%); Fram (15%); and Snøhvit (12%).

Neptune Energy Norge operates from offices in Stavanger and Florø

About VNG Norge AS

VNG Norge AS, based in Stavanger and Oslo, was responsible for VNG Group’s oil and gas exploration and production (E&P) activities. Established in 2006, VNG Norge operates in Norway and Denmark. The company has 94 employees and generated sales of approximately €65 million in 2017.

About VNG AG

VNG AG, headquartered in Leipzig, is the parent company of the VNG Group, which is active throughout the whole value chain of the German and European natural gas industry and focuses on the business areas of trading & sales, transport and storage. With 60 years of experience, the VNG Group makes a key contribution to ensuring security of supply in the area of natural gas. The Group employs approx. 1,200 people and generated sales of approx. €10.3 billion in 2017. Shareholders are EnBW Energie Baden-Württemberg AG, Karlsruhe (74.21%), VNG Verbundnetz Gas Verwaltungs- und Beteiligungsgesellschaft mbH, Leipzig (21.58%) and OEW Energie-Beteiligungs GmbH, Ravensburg (4.21%).