Vermilion Energy Inc. has agreed a CA$120 million (£64.7m) sale of its remaining United States assets to reduce its debt and focus on its core gas-weighted assets in Canada and Europe.
PRIORITY
The transaction has an effective date of 1 January 2025 and is expected to close during the third quarter.
The company anticipates net debt to decrease to $1.3 billion by the end of this year.
The agreement covers some 5,500 boe/d (81% oil and liquids) of production and approximately 10 mmboe of proved developed producing reserves in Wyoming.
Additionally, the deal includes $10 million of contingent payments over the two-year period beginning 1 July 2025.
Vermilion projects full year and second half 2025 production range of between 117,000 to 122,000 barrels of oil equivalent per day, with 68% natural gas-weighted in the second half of 2025.
“On a go-forward basis, it is estimated that over 90% of production will come from our global gas portfolio and over 80% of capital is expected be allocated to these assets,” added the company.
“Vermilion will continue to evaluate capital investment levels during this period of increased volatility and will adjust capital if necessary to prioritise free cash flow over production growth during 2025 and 2026.”
The Canadian company owns a 56.5% operated interest in the Corrib natural gas field, offshore Ireland as well as assets in France, Germany, Netherlands, Central and Eastern Europe.
Vermilion also has acreage in Alberta, British Columbia and Manitoba in Canada and an operated interest offshore Australia.