UK-based EMOV has closed the acquisition of an 88% stake in private company Sand Hill Petroleum, which owns upstream and midstream assets in Hungary and Romania.
Financial terms of the deal, which was first announced in September 2022, were not disclosed.
Sand Hill has a production capacity of more than 300,000m³ per day of natural gas from license concessions in central and north-east Hungary.
EMOV said a drilling programme is planned to commence in March 2023 in Sand Hill’s production hub in north-east Hungary.
In Romania, Sand Hill owns an operatorship stake in two onshore exploration concessions, with its partner MOL Group.
EMOV noted that the acquisition provides it with a growth platform amid the surging demand for natural gas in Europe.
EMOV non-executive director Bill Burkett said: “This acquisition gives EMOV an established business in one of our target regions from which we can generate significant future growth. In a market that is structurally short of natural gas, Sand Hill is well-positioned to increase production and diversify into lower-carbon projects within its existing portfolio.
“We look forward to working with the Sand Hill team to further enhance the company’s position as a leading energy producer in the region.”
Furthermore, Sand Hill owns and operates two natural gas processing, treatment, and storage facilities in Hungary.
These sites, which are used to process Sand Hill’s gas and condensate production, have a combined capacity of 950,0000m³ per day.