Vermilion Energy Announces Deep Basin Acquisition

TL;DR

Vermilion Energy just bought something big in the Deep Basin, details in the news release.

AI Summary

Vermilion Energy Inc. announced a strategic acquisition in the Deep Basin on December 23, 2024. The filing includes a news release detailing this acquisition, which is expected to be a significant development for the company. Further details on the financial implications and strategic rationale are provided within the associated news release.

Why It Matters

This acquisition could significantly expand Vermilion Energy's operational footprint and resource base in a key producing region, potentially impacting future production and profitability.

Risk Assessment

Risk Level: medium — Acquisitions inherently carry risks related to integration, valuation, and market reception, which could impact Vermilion Energy's financial performance.

Key Players & Entities

• Vermilion Energy Inc. (company) — Registrant and acquirer
• Deep Basin (location) — Region of acquisition
• December 23, 2024 (date) — Date of news release and announcement
• Lars Glemser (person) — VP signing the report

FAQ

From the Filing

0001279569-24-001504.txt : 20241223 0001279569-24-001504.hdr.sgml : 20241223 20241223074149 ACCESSION NUMBER: 0001279569-24-001504 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20241223 FILED AS OF DATE: 20241223 DATE AS OF CHANGE: 20241223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VERMILION ENERGY INC. CENTRAL INDEX KEY: 0001293135 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] ORGANIZATION NAME: 01 Energy & Transportation IRS NUMBER: 000000000 STATE OF INCORPORATION: A0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35829 FILM NUMBER: 241569887 BUSINESS ADDRESS: STREET 1: 3500, 520 - 3RD AVENUE S.W. CITY: CALGARY STATE: A0 ZIP: T2P 0R3 BUSINESS PHONE: 403-269-4884 MAIL ADDRESS: STREET 1: 3500, 520 - 3RD AVENUE S.W. CITY: CALGARY STATE: A0 ZIP: T2P 0R3 FORMER COMPANY: FORMER CONFORMED NAME: VERMILION ENERGY TRUST DATE OF NAME CHANGE: 20040607 6-K 1 vermilion6k.htm FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 Under the Securities Exchange Act of 1934 For the month of December 2024 Commission File Number: 001-35829 Vermilion Energy Inc. (Exact name of registrant as specified in its charter) 3500, 520 – 3 rd Avenue S.W., Calgary, Alberta T2P 0R3 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☐ Form 40-F ☒ Exhibit Exhibit Description 99.1 News Release dated December 23, 2024 - Vermilion Energy Inc. Announces Strategic Deep Basin Acquisition SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 	 	 VERMILION ENERGY INC. By: /s/ Lars Glemser Title: Lars Glemser, VP and Chief Financial Officer Date: December 23, 2024 EX-99.1 2 ex991.htm NEWS RELEASE DATED DECEMBER 23, 2024 Exhibit 99.1 Vermilion Energy Inc. Announces Strategic Deep Basin Acquisition CALGARY, AB, Dec. 23, 2024 /CNW/ - Vermilion Energy Inc. ("Vermilion", or the "Company") (TSX: VET) (NYSE: VET) is pleased to announce it has entered into an arrangement agreement (the "Arrangement Agreement") to acquire Westbrick Energy Ltd. ("Westbrick"), a privately held oil and gas company operating in the Deep Basin, for total consideration of $1.075 billion by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Acquisition"), expected to close in Q1 2025 (1) . "The strategic acquisition of Westbrick represents a significant step forward in Vermilion's North American high-grading initiative to increase operational scale and enhance full-cycle margins in the liquids-rich Deep Basin," commented Dion Hatcher, President and CEO of Vermilion. "The Deep Basin is an area Vermilion has been operating in for nearly three decades and is currently the largest producing asset in the Company. The Acquisition adds 50,000 boe/d of stable production and approximately 1.1 million (770,000 net) acres of land from which Vermilion has identified over 700 drilling locations, providing a robust inventory to keep production flat for over 15 years while generating significant free cash flow to enhance the Company's long-term return of capital framework." The Acquisition enhances depth and quality of Vermilion's Deep Basin inventory and complements the Company's high-growth, liquids-rich Montney asset. Vermilion's Canadian liquids-rich gas assets, combined with over 100 mmcf/d of high-netback, low-decline European natural gas production provides the Company with a premium realized natural gas price. Vermilion is committed to strategically growing its international assets both organically, as demonstrated by