Vermilion
Vermilion
Vermilion
Canada

Canada

  • Vermilion has over 15 years of successful Canadian operations
  • Canada provides a vast source of oil and gas technology and trained personnel
  • New well completion techniques are revitalizing the Western Canadian Basin

Alberta

  • In West Pembina, potential for three significant development projects sharing the same surface infrastructure
  • Cardium light oil development (1,800 m depth)
  • Mannville liquids-rich gas inventory (2,400 - 2,700 m depth)
  • Extensive position in Duvernay liquids-rich gas resource play (3,200 - 3,400 m depth)
  • Utikuma - significant light oil field in northern Alberta; Reservoir optimization and enhancement – one of Vermilion’s five largest oil pools
  • Central Alberta - coalbed methane and shallow gas development; Large inventory of shallow gas CBM wells; Program can be turned on and off quickly depending on commodity prices
  • Operate four natural gas plants and hold an ownership interest in five additional plants with combined processing capacity of 80 mmcf/d
  • Operate five oil batteries with combined processing capacity to handle over 20,500 bbl/d of oil

Saskatchewan

  • Acquired Elkhorn Resources Inc. for $427 MM (closed April 29, 2014)
  • $205MM equity (2.8MM VET shares) + $180MM cash + $42MM assumed debt
  • 2014 estimated production rate = 3,750 boe/d (97% oil)
  • 2P reserves = 16.5 mmboe (2P reserves as evaluated by GLJ Petroleum Consultants Ltd. (reported dated March 17, 2014 with an effective date of February 28, 2014).
  • Approximately 150 net future drilling locations identified by Vermilion
  • Compliments our recently-leased 15,000 net acre position targeting Mississippian in soutwest Manitoba.

The acquired assets are comprised of high netback, light oil producing assets in the Northgate region of southeast Saskatchewan and include approximately 57,000 net acres of land (approximately 80% undeveloped), seven oil batteries, and preferential access to 50% or greater capacity at a solution gas facility that is currently under construction.  The majority of production and development drilling opportunities are from the Midale formation, with additional opportunities identified in the Frobisher, Bakken and Three Forks/Torquay formations. 

The acquisition creates a new core area for our Company in the Williston Basin where we have been evaluating producing entry opportunities for an extended period of time.  We believe the multi-horizon, horizontal well techniques employed in this area are well-suited to the expertise we have established during development of our Pembina-area assets in Alberta.  The assets are geographically complementary to recent leasing activity we have conducted for Mississippian development in southwest Manitoba and exhibit the three hallmark characteristics of our sustainable growth-and-income model: high margins, low base decline rates and strong capital investment efficiencies on future development. 

For futher details of our Canadian Operations, please visit our most recent Investor Presentation Slide Deck under Investor Relations / Events & Presentations

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Canada Alberta Saskatchewan