Vermilion Energy to bolster financial position with $415m asset sale

Vermilion Energy, the Canadian energy producer, Vermelion, reached a final agreement to strip its assets in Saskatchean and Manitoba for $ 415 million in cash revenues.

The transaction is a strategic step to accelerate the payment of the company’s debts and enhance its financial stability.

The sale is expected to generate about 110 million dollars from the net annual operating income, based on the prices of current basic commodities.

These assets, in the first place, oil and fluids, produce approximately 10,500 barrels of equivalent oil per day (BOEPD).

McDaniel & Associaats Consultans has evaluated the advanced reserves that were developed at 30 million barrels of the equivalent of oil as of December 31, 2024, where the obligations of the future are estimated at 250 million dollars.

With the targeted closure in the third quarter of 2025, the transaction is valid from May 1, 2025.

It depends on organizational approvals and other standard closing conditions.

Vermilion expects its entire public production to be in 2025 ranging from 120,000 air to 125,000 air, as capital expenditures will range between 680 million dollars to $ 710 million.

This reflects a reduction of about $ 50 million due to backward assets.

Vermilion executive team indicated a commitment to invest in wise capital throughout the periods of market fluctuations.

The company plans to control capital expenses as needed to determine the priorities of free cash flow from production growth in 2025 and 2026.

The revenues of selling assets will not only enhance the public budget for Vermilion, but also provide flexibility in additional capital for its basic assets in Canada and Europe.

National Bank Financial acts as an exclusive financial advisor, ScotiaBank as a strategic advisor, and Torys as a legal advisor to this deal.

In February, Vermilion expanded the Alberta Deep Basin asset base with a Westbrick Energy acquisition for $ 1.075 billion ($ 746.53 million), indicating its continuous commitment to growth and operational excellence.

“Vermilion Energy to support the financial situation by selling assets worth $ 415 million” was originally created by Offshore Technology, a brand owned by Globaldata.

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