Tenaz Energy Corp. (TSX: TNZ) announced the signing and closing of its acquisition of a private company holding interests in the Gateway to the Ems (GEMS) gas project, located on the Dutch–German border of the North Sea.
The purchase price totals US$244 million (C$339 million), including US$232 million in cash and US$12 million in Tenaz common shares, with up to US$60 million in contingent payments tied to future exploration success.
The acquired assets are expected to produce 3,200 barrels of oil equivalent per day in 2025, rising to about 7,000 /d in 2026, with 99% of production in TTF-priced natural gas. According to Tenaz, at current strip pricing, the assets could generate approximately C$160 million in funds flow from operations and C$95 million in free cash flow in 2026.
Production began in March 2025 from the N05-A platform, currently hosting the highest-rate gas well in the Netherlands.
The N05-A-01 well tested at 54 /d and is producing 76 /d gross. The field’s estimated gross proved plus probable recoverable gas is 219 Bcf. Additional infill wells are planned for late 2025. Tenaz’s working interests across five GEMS licenses range from 22.5% to 45%.
The project operator is ONE-Dyas B.V., with EBN and ENI as partners. The licenses span 1,811 km², and production infrastructure includes the N05-A platform tied into the NGT gas system and powered by the Riffgat Windfarm.
The company financed the cash portion of the transaction through cash-on-hand and a private placement of US$178.9 million in senior unsecured notes, issued at an 8.4% premium and carrying a 12% coupon.
Tenaz also established a new US$115 million reserve-based lending facility with National Bank Capital Markets, Canadian Imperial Bank of Commerce, and Goldman Sachs, which remains undrawn.
The transaction is expected to reduce Tenaz’s consolidated operating costs by 23% in 2026 and add 19.3 million boe of proved plus probable reserves.
Tenaz Energy Corp. is a Canadian public energy company headquartered in Calgary, Alberta. It is engaged in the acquisition, exploration, and sustainable development of international oil and gas assets.
