Vermilion Energy Inc. Confirms Closing of Southeast Saskatchewan Asset Sale

Rhea-AI Summary

Vermilion Energy Inc. (NYSE: VET) has successfully closed the sale of non-core assets in southeast Saskatchewan, generating gross proceeds of $225 million. This divestment includes approximately 5,500 boe/d of light oil production from the Arcola and Queensdale areas. The effective date of the transaction is noted as September 1, 2022. Proceeds will aid Vermilion in repositioning for long-term success, enhancing North American inventory, reducing unit costs, and expediting debt reduction targets. The move aligns with Vermilion's strategy of focusing on free cash flow generation and returning capital to investors.

Positive

• Generated gross proceeds of $225 million from the asset sale.
• Improves financial position by reducing unit costs.
• Supports debt reduction targets and strategic repositioning.

Negative

• None.

CALGARY, AB, March 29, 2023 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion") (TSX: VET) (NYSE: VET) is pleased to confirm the closing of the previously announced sale of non-core assets in southeast Saskatchewan for gross proceeds of $225 million, prior to closing adjustments.

The assets are comprised of approximately 5,500 boe/d of non-core light oil production spread across the greater Arcola and Queensdale areas of southeast Saskatchewan. The divestment was part of our strategy to re-position Vermilion for long term success by high-grading our North American inventory, reducing unit cost and accelerating the timeline of achieving our debt reduction targets. The transaction has an effective date of September 1, 2022.

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.

FAQ

What assets did Vermilion Energy sell in Saskatchewan?

Vermilion Energy sold non-core assets comprising approximately 5,500 boe/d of light oil production.

How much did Vermilion Energy earn from the asset sale?

The company generated gross proceeds of $225 million from the sale.

When was the asset sale announced and closed?

The asset sale was announced prior to March 29, 2023, and closed on the same date.

What is the effective date of the asset sale for Vermilion Energy?

The effective date of the transaction is September 1, 2022.

What is Vermilion Energy's stock symbol?

Vermilion Energy trades under the stock symbol VET.