Neptune Purchase Adds to German Output

Privately-backed Neptune Energy is buying oil and gas fields in northwest Germany from the newly-formed operator Wintershall Dea, it said July 29. The assets are in Emsland and the Grafschaft Bentheim region, near the border with the Netherlands. The company did not disclose the price.

The agreement will increase Neptune’s existing interest in the Bramberge, Meppen and Annaveen oilfields in the Emsland region and in various gas fields in the Grafschaft Bentheim region, adding about 600 barrels of oil equivalent (boe)/day of net production, or about 5%.

Neptune is already a joint venture partner in the assets and operates the Bramberge oil field and the Grafschaft Bentheim gas fields. Neptune's overall German production is split roughly 60-40 in favour of oil.

Neptune's manager for Germany Andreas Scheck said: “Increasing our interest in these fields is strategically important for Neptune, enhancing our production and demonstrating our commitment to grow our footprint in key producing regions in Germany... I firmly believe in the potential of oil and gas production in Emsland and in the Grafschaft Bentheim over the coming decades – a very traditional E&P region in Germany, and one with a strong, positive future.”

The transaction is subject to regulatory and partner approvals, with completion expected in the third quarter of 2019.

Together with its partner, the company plans to drill a new gas well, Adorf Z15, in the second half of this year. The well pad in the municipality of Hoogstede has already been constructed.

Neptune entered Germany when it bought the upstream assets of French Engie.