Vermilion Energy Inc. Provides Operational Update

Core Viewpoint - Vermilion Energy Inc. has provided an operational update highlighting successful exploration and production activities in Germany, Croatia, Canada, and Australia, along with a focus on returning capital to shareholders through share buybacks and dividends. Exploration and Production Updates - In Germany, the first deep gas exploration well was completed at a depth of approximately 5,000 meters, flow testing at a restricted rate of 17 mmcf/d with a wellhead pressure of 4,625 psi, indicating strong reservoir potential [2] - The company has initiated drilling of a second deep exploration well in Germany and plans to accelerate drilling of a third well, expecting higher chances of success based on technical evaluations [3] - In Croatia, production on the SA-10 block has exceeded 2,000 boe/d, with strong cash flow contributions from high-value natural gas selling at a premium to the TTF benchmark [4] - The company has completed testing on the third well of a four-well program in Croatia, with encouraging results that de-risk future development [4] Financial Performance and Market Position - European natural gas production accounts for 22% of corporate production, with strong pricing dynamics supporting 2024 operating netbacks exceeding $55/boe [5] - The company has hedged approximately 45% of European natural gas production at a protection level of $17/mmcf for 2025, enhancing financial stability [5] Canadian Operations - In Canada, five wells from the Mica Montney asset were brought on production with an average IP30 rate of over 1,000 boe/d per well, aligning with the company's type curve [6] - The total cost for drilling, completing, and tying in these wells was approximately $9.6 million each, with ongoing efforts to reduce costs further [6] Shareholder Returns - The company has repurchased 1.4 million shares in August 2024, totaling 7.5 million shares year-to-date, resulting in a net share count reduction of 4.6% [8] - A quarterly dividend of $0.12 per share has been reaffirmed for October 15, 2024, demonstrating commitment to returning capital to shareholders [8] Future Outlook - Vermilion plans to release Q3 2024 results on November 6, 2024, after North American market close, indicating ongoing transparency and communication with investors [9]