Vermilion Energy Trust, Calgary, (Toronto: VET.UN) plans to purchase 89.88% of Esso SAF, the French subsidiary of Irving, Texas-based Exxon Mobil Corp., (NYSE: XOM) for approximately C$185 million. Closing is expected before the end of the second quarter of 2006. Esso has total production of 4,370 barrels of oil per day in France from assets that are adjacent to Vermilion's existing assets. Vermilion's share of the acquired production will average approximately 3,500 barrels of oil per day. The acquisition will also add 11.2 million barrels of oil equivalent of proved reserves and 15.5 million barrels of oil equivalent of proved-plus-probable reserves, give the acquired assets a reserve-life index of 10.8 years. The acquired properties are in ten production concessions in the Paris and Aquitaine basins. The acquisition will increase Vermilion's production in France to approximately 9,700 barrels of oil equivalent per day. Vermilion plans to finance the acquisition using existing lines of credit.
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