Path Investments has agreed to acquire a 50% interest in the Alfeld-Elze II producing gas field in Germany from 5P Energy for an initial payment of €5m and possible milestone payments of more than €12m.
The Alfeld-Elze II licence encompasses the Alfeld-Elze and Hildesheimer Wald gas deposit and covers a total area of 64.6 square kilometres.
The €5m initial payment would come on completion of the proposed transaction and cover project costs.
A further cash payment of €2m would be subject to the achievement of commercial production, while a further €10m would go towards the cost of drilling, logging and testing of one or more new wells.
Path Investments said it would also cover 50% of costs incurred after January 1 and that additional cash payments may become payable if certain milestones are met.