CALGARY,
AB, April 3, 2023 /PRNewswire/ - Vermilion
Energy Inc. ("Vermilion") (TSX: VET) (NYSE: VET) is pleased to
announce the closing of the acquisition of Equinor Energy Ireland
Limited ("EEIL") from Equinor ASA on March
31, 2023.
The acquisition of EEIL adds an incremental 36.5% interest in
the Corrib Natural Gas Project ("Corrib"), increasing Vermilion's
operated interest to 56.5%. The acquisition makes Vermilion the
largest provider of domestic natural gas in Ireland. We entered into an agreement with
Equinor ASA in November 2021 to
acquire EEIL with an effective date of January 1, 2022 for total consideration of
US$434 million ($556 million), before closing adjustments and
contingent payments. The net purchase price after adjusting for the
interim free cash flow between the effective date and closing date
inclusive of Vermilion's estimates of European windfall taxes based
on information released to-date on how it will be implemented in
Ireland, the contingent payment
and other closing adjustments is approximately $200 million.
The acquisition of EEIL adds approximately 7,000 boe/d of
premium-priced, high netback, low emission European natural gas
production, further strengthening Vermilion's international
portfolio. Vermilion has been operating internationally for over 26
years, which has served as a key differentiating advantage as our
diversified asset base provides exposure to global commodities,
which reduces volatility and drives industry leading netbacks. Our
international assets target conventional reservoirs, which
typically have lower decline rates and better capital efficiencies
compared to many North American basins. The combination of high
netbacks, low decline rates and strong capital efficiencies drive
outsized free cash flow, which supports our capital markets model
of increasing the return of capital to shareholders as debt levels
decrease. The March 31, 2023 closing
of the Corrib acquisition is already incorporated in our 2023
guidance provided on March 8,
2023.
Corrib is a world class, low emission, natural gas facility
comprised of a conventional gas field located 83 kilometers off the
northwest coast of Ireland and a
state of the art gas processing plant onshore Ireland. The facility has a gross plant
capacity of approximately 350 million cubic feet of natural gas per
day and is currently producing 115 million cubic feet of natural
gas per day, representing approximately 20% of Ireland's natural gas consumption and 100% of
Ireland's domestic gas production.
Since taking over operatorship in 2018, Vermilion has reduced costs
and increased uptime, while maintaining world class safety and
environmental performance.
About Vermilion
Vermilion is an international energy producer that seeks to
create value through the acquisition, exploration, development and
optimization of producing assets in North
America, Europe and
Australia. Our business model
emphasizes free cash flow generation and returning capital to
investors when economically warranted, augmented by value-adding
acquisitions. Vermilion's operations are focused on the
exploitation of light oil and liquids-rich natural gas conventional
and unconventional resource plays in North America and the exploration and
development of conventional natural gas and oil opportunities in
Europe and Australia.
Vermilion's priorities are health and safety, the environment,
and profitability, in that order. Nothing is more important to
us than the safety of the public and those who work with us, and
the protection of our natural surroundings. We have been
recognized by leading ESG rating agencies for our transparency on
and management of key environmental, social and governance issues.
In addition, we emphasize strategic community investment in each of
our operating areas.
Vermilion trades on the Toronto Stock Exchange and the New York
Stock Exchange under the symbol VET.
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SOURCE Vermilion Energy Inc.
