CALGARY, April 29, 2014 /CNW/ - Vermilion Energy Inc. ("Vermilion", the
"Company", "We" or "Our") (TSX, NYSE: VET) is pleased to announce that
we have completed our acquisition of Elkhorn Resources Inc. for total
consideration of approximately $427 million. Total consideration
comprised the assumption of an estimated $42 million of debt, $180
million of cash, and the issuance of 2.8 million common shares of
Vermilion valued at approximately $205 million (based on the closing
price per Vermilion common share of $72.50 on the Toronto Stock
Exchange on April 29, 2014).
The acquired assets are comprised of high netback, light oil producing
assets in the Northgate region of southeast Saskatchewan and include
approximately 57,000 net acres of land (approximately 80% undeveloped),
seven oil batteries, and preferential access to 50% or greater capacity
at a solution gas facility that is currently under construction. The
majority of production and development drilling opportunities are from
the Midale formation, with additional opportunities identified in the
Frobisher, Bakken and Three Forks/Torquay formations.
The acquisition creates a new core area for our Company in the Williston
Basin where we have been evaluating producing entry opportunities for
an extended period of time. We believe the multi-horizon, horizontal
well techniques employed in this area are well-suited to the expertise
we have established during development of our Pembina-area assets in
Alberta. The assets are geographically complementary to recent leasing
activity we have conducted for Mississippian development in southwest
Manitoba and exhibit the three hallmark characteristics of our
sustainable growth-and-income model: high margins, low base decline
rates and strong capital investment efficiencies on future development.
Vermilion is an oil-leveraged producer that seeks to create value
through the acquisition, exploration, development and optimization of
producing properties in Western Canada, Europe and Australia. Our
business model targets annual organic production growth of 5% or more
along with providing reliable and increasing dividends to investors.
Vermilion is targeting growth in production primarily through the
exploitation of light oil and liquids-rich natural gas conventional
resource plays in Western Canada, the exploration and development of
high impact natural gas opportunities in the Netherlands and Germany,
and through drilling and workover programs in France and Australia.
Vermilion also holds an 18.5% working interest in the Corrib gas field
in Ireland. Vermilion pays a monthly dividend of Canadian $0.215 per
share, which provides a current yield of approximately 4%. Management
and directors of Vermilion hold approximately 8% of the outstanding
shares, are committed to consistently delivering superior rewards for
all stakeholders, and have delivered a 20-year history of market
outperformance. Vermilion trades on the Toronto Stock Exchange and the
New York Stock Exchange under the symbol VET.
SOURCE: Vermilion Energy Inc.
For further information:
Lorenzo Donadeo, CEO; Anthony Marino, President & COO; Curtis W. Hicks, C.A., Executive VP & CFO; and/or Dean Morrison, Director Investor Relations
TEL (403) 269-4884 | IR TOLL FREE 1-866-895-8101 | firstname.lastname@example.org | www.vermilionenergy.com