Vermilion inked a deal to sell Powder River Basin assets for CA$120 million (~US$88 million). (Source: Shutterstock.com)
Canadian firm Vermilion Energy is selling its last U.S. assets for cash proceeds of CA$120 million (~US$88 million).
The assets in the Powder River Basin include an average of 5,500 boe/d (81% oil and liquids) of production and 10 MMboe of proved developed producing (PDP) reserves.
Calgary-based Vermilion told investors it had launched a formal sales process for the Wyoming assets in the first quarter. The assets include multi-zone development potential across the Niobrara and Parkman benches.
The deal is expected to close in the third quarter. The transaction agreement includes CA$10 million of contingent payments depending on WTI prices over the next two years.
Vermilion plans to use proceeds from the sale for debt repayment. The buyer was not disclosed.
The Wyoming sale represents Vermilion’s exit from the U.S. market and allows the company to focus on gas-weighted assets in Canada and Europe.
Vermilion estimates that more than 90% of its future production will come from its global gas portfolio.
Last month, Vermilion announced selling assets in Saskatchewan and Manitoba for around US$302 million.
The Canada assets included 10,500 boe/d (86% oil and liquids) of production and 30 MMboe of PDP reserves.
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Vermilion Energy to Sell Saskatchewan, Manitoba Assets for US$302MM
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