Vermilion Energy to Sell Saskatchewan, Manitoba Assets for $302 Million
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Vermilion Energy has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $301.6 million (CAD$415 million).
The assets are currently producing approximately 10,500 boe/d (86 percent oil and liquids) and are forecast to generate approximately $110 million of annual net operating income at current strip commodity prices. The assets had proved developed producing reserves of 30 mmboe as evaluated by McDaniel & Associates Consultants at December 31, 2024, and approximately $250 million of undiscounted future abandonment liabilities.
The company said the transaction marks another significant step in its strategic plan to high-grade the asset portfolio that began three years ago, shifting its focus toward long-duration, scalable assets with deep inventory of high return on capital opportunities. Their liquids-rich gas position in Western Canada, combined with strategic acquisitions in Europe and significant exploration success in Germany have reframed Vermilion’s global gas franchise that will serve shareholders for years to come.
Vermilion Energy is a global gas producer that seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe and Australia. The company’s 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.
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