Published: January 21, 2025 |

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Vermilion Energy has entered into an arrangement agreement to acquire Westbrick Energy for total consideration of $745,645,050 million (CAD$1.075 billion) by way of a plan of arrangement under the Business Corporations Act. The acquisition is expected to close in Q1 2025.

“The strategic acquisition of Westbrick represents a significant step forward in Vermilion’s North American high-grading initiative to increase operational scale and enhance full-cycle margins in the liquids-rich Deep Basin,” said Dion Hatcher, president and CEO of Vermilion.

“The Deep Basin is an area Vermilion has been operating in for nearly three decades and is currently the largest producing asset in the company. The acquisition adds 50,000 boe/d of stable production and approximately 1.1 million (770,000 net) acres of land from which Vermilion has identified over 700 drilling locations, providing a robust inventory to keep production flat for over 15 years while generating significant free cash flow to enhance the company’s long-term return of capital framework,” added Hatcher.

The acquisition enhances depth and quality of Vermilion’s Deep Basin inventory and complements the company’s high-growth, liquids-rich Montney asset. Vermilion’s Canadian liquids-rich gas assets, combined with more than 100 mmcf/d of high-netback, low-decline European natural gas production provides the company with a premium realized natural gas price.

Vermilion said it is committed to strategically growing its international assets both organically, as demonstrated by recent successes in Germany and Croatia, and via acquisitions. In the near term, the company will focus on operational execution, debt reduction, return of capital, and further high-grading of assets within its portfolio, including non-core asset sales, to enhance long-term shareholder value.

Upon closing, Vermilion will be an approximately 135,000 boe/d entity with greater than 80 percent of its production derived from its global gas franchise, consisting of liquids-rich gas in Alberta and BC and gas-weighted production in Ireland, Germany, Netherlands, and Croatia.

Vermilion Energyy 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. 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 has been recognized by leading ESG rating agencies for its transparency on and management of key environmental, social, and governance issues. In addition, the company emphasizes strategic community investment in each of its operating areas.

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