10/01/2013 06:48 EDT | Updated 12/01/2013 05:12 EST

Vermilion Energy to expand in Netherlands through Northern Petroleum deal

CALGARY - Vermilion Energy Inc. (TSX:VET) has agreed to pay $27.5 million to acquire Northern Petroleum Nederland BV from its U.K.-based parent.

Calgary-based Vermilion says the deal with Northern Petroleum PLC, announced Tuesday, provides it with interests in nine concessions in the Netherlands, including four close to its existing concessions.

The assets — six onshore licences in production or development and three onshore exploration properties — are expected to produce the equivalent of 600 barrels of oil per day, comprise of 99 per cent natural gas in 2013.

The deal is subject to the recept of regulatory approvals. It's expected to close before the end of October but will have an effective date of Jan. 1, 2013.

Vermilion will operate allof the acquired assets except for offshore licence P12, where it will hold a 23.6 per cent interest.