By Adriano Marchese
Vermilion Energy has agreed to sell its oil-producing assets in Saskatchewan and Manitoba for 415 million Canadian dollars ($299.5 million) as it looks to focus more on Western Canada and Europe.
The Calgary, Alberta-based energy company said Friday that it has entered into a definitive agreement to sell the assets, but didn't identify the buyer. Proceeds from the sale are expected to strengthen Vermilion's balance sheet and provide flexibility for its core operations in Western Canada and Europe, the company said.
The assets altogether produce about 10,500 barrels of oil equivalent a day, and generate around C$110 million of net operating income per year.
The deal is expected to close sometime in the third quarter.
Vermilion said it now expects full-year 2025 production to average between 120,000 to 125,000 barrels a day with capital expenditures in the range of C$680 million to C$710 million. That reflects about C$50 million less to account for the divested assets post-closing.
"Our liquids-rich gas position in Western Canada, combined with strategic acquisitions in Europe and significant exploration success in Germany have reframed Vermilion's global gas franchise that will serve shareholders for years to come," the company said.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 23, 2025 06:48 ET (10:48 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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