Prnewswireยท2025-02-26 16:41Core Viewpoint - Vermilion Energy Inc. has successfully completed the acquisition of Westbrick Energy Ltd., enhancing its production capacity and operational synergies in the Deep Basin trend of Alberta [1][2]. Acquisition Details - The acquisition adds stable annual production of 50,000 barrels of oil equivalent per day (boe/d), comprising 75% gas and 25% liquids, along with approximately 1.1 million acres of land [2]. - The deal includes four operated gas plants with a total capacity of 102 million cubic feet per day (mmcf/d) [2]. - Vermilion has identified over 700 future drilling locations on the acquired acreage, with half-cycle internal rates of return (IRRs) ranging from 40% to over 100% based on estimates from McDaniel & Associates [2]. Financial Considerations - Westbrick shareholders have the option to receive up to 1.7 million Vermilion common shares, with certain shareholders electing to receive 1.1 million shares valued at $14.2 million [3]. - The remaining consideration for the acquisition will be paid in cash, funded through cash on hand, a new $450 million term loan, and an undrawn $1.35 billion revolving credit facility [3]. Future Guidance - Vermilion plans to provide updated 2025 budget and financial guidance reflecting the increased scale of the company following the acquisition during the release of its Q4 2024 results on March 5, 2025 [4].