Vermilion Energy to Sell Saskatchewan, Manitoba Assets for US$302MM

Calgary, Alberta-based Vermilion Energy Inc. is selling Saskatchewan and Manitoba assets in Canada for CA$415 million (~US$302 million).

The assets currently produce 10,500 boe/d (86% oil and liquids) and have 30 MMboe in PDP reserves as of December 2024. At current strip prices, the assets are expected to generate $110 million of annual net operating income.

Proceeds from the sale will go toward debt reduction. By the end of 2025, Vermilion expects its net debt to be CA$1.5 billion.

The transaction, effective May 1, is expected to close in the third quarter, subject to customary closing conditions and regulatory approval.

Vermillion is will cut CA$50 million associated with the assets from its expected 2025 capex following the sale’s close. Full-year 2025 production will average between 120,000 boe/d to 125,000 boe/d.

Vermilion continues to hold assets in conventional and unconventional resource plays in North America and conventional natural gas and oil opportunities in Europe and Australia.

Vermilion grew its position in Saskatchewan through a deal with a private company in 2014 and the acquisition of Spartan Energy Corp. in 2018, the company said on its website.

The company’s Canada assets also include the Mannville condensate-rich gas play and West Pembina Cardium play in Alberta, and Peace River Arch in British Columbia.

National Bank Financial Inc. is acting as exclusive financial adviser and Scotiabank is acting as strategic adviser to Vermilion. Torys LLP is acting as legal adviser to Vermillion on the transaction.