Vermilion Energy Inc. Completes Acquisition of Southeast Saskatchewan Assets
April 29, 2014
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.
Source: http://www.vermilionenergy.com/news/news.cfm?newsReleaseAction=view&releaseId=88
Company Details
- Founded
- -
- Address
- 1122 4 St Sw, Calgary,alberta,canada
- Industry
- Oil And Gas
- NAICS
-
Oil and Gas Extraction
- HQ
- Calgary, Alberta
Elkhorn Resources Inc. Questions
Elkhorn Resources Inc.'s LinkedIn profile is https://ca.linkedin.com/company/elkhorn-resources-inc
Elkhorn Resources Inc.'s industry is
Oil and Gas
Elkhorn Resources Inc.'s top competitors are
Sharptail Energy Inc,
Point Bar Resources Inc.,
Mcland Resources Ltd.,
Mahikan Oil Corporation,
Ironwolf Resources Inc.,
Parens Oil Corporation,
Rampart Oil Inc,
Taggart Oil Corp.,
Aduro Resources Ltd.,
Free Rein Resources.
Elkhorn Resources Inc.'s categories are Oil and Gas
Elkhorn Resources Inc.'s founding year is 2009
