Core Viewpoint - Tenaz Energy Corp. has successfully acquired a private company with interests in the Gateway to the Ems (GEMS) project for a total purchase price of US$244 million, which includes cash and shares, with potential contingent payments based on future exploration success [1][16][18]. Group 1: Acquisition Details - The acquisition price consists of US$232 million in cash and US$12 million in Tenaz common shares, with contingent consideration of up to US$60 million based on future exploration discoveries [1][16][18]. - The net production from the acquired assets is projected to be approximately 3,200 barrels of oil equivalent per day (boe/d) in 2025, increasing to about 7,000 boe/d in 2026 [1][20]. Group 2: Asset Description - The GEMS project includes five licenses covering 1,811 km² (447,000 acres) in the North Sea, with working interests ranging from 22.5% to 45% [4][6]. - The production is sourced from the Basal Rotliegend Sandstone within the Lower Slochteren formation, with gas sourced from underlying Carboniferous coals [3]. Group 3: Financial Metrics - The acquired assets are expected to generate funds flow from operations (FFO) of approximately $160 million and free cash flow (FCF) of about $95 million in 2026 [7][20]. - The acquisition is anticipated to decrease consolidated unit operating costs and unit general and administrative expenses by approximately 23% in 2026 [21]. Group 4: Infrastructure and Production - The N05-A platform, which began production in March 2025, has a nameplate capacity of 225 million cubic feet per day (MMcf/d) and is integrated with the NGT offshore gas gathering system [8][9]. - The N05-A pool is estimated to have a gross P50 gas initially in place (GIIP) of 259 billion cubic feet (Bcf) and gross 2P recoverable gas of 219 Bcf [10]. Group 5: Development and Exploration Potential - The assets include two Proved Undeveloped fields and 14 exploration prospects, with significant potential for future production growth [11][12]. - Three of the exploration prospects have been economically evaluated, totaling 358 Bcf of gross mean unrisked prospective resources [13]. Group 6: Financing and Debt Management - The acquisition was primarily funded through cash and long-term notes, with a small equity component to maximize shareholder value [7][22]. - A new secured revolving reserve-based lending facility of $115 million has been established to enhance liquidity [26].