Vermilion
Vermilion
Vermilion
Ireland

Ireland

  • 18.5% non-operated interest in the Corrib Gas Field
  • Corrib Gas Field is forecast to supply up to 60% of Ireland's gas at peak supply
  • Vermilion is committed to being a key contributor to Ireland's oil & gas industry

Ireland Business Unit Activity Review

Production

  • Natural gas began to flow from our Corrib gas project on December 30, 2015 and production volumes reached full plant capacity of approximately 65 mmcf/d (10,900 boe/d), net to Vermilion at the end of Q2 2016.
  • Q2 2017 production was in -line with prior quarter production and increased 35% year-over-year as Q2 2016 production volumes were restricted during the commissioning period that occurred in the first half of 2016.
  • Production results continued to benefit from better than expected well deliverability and minimal downtime.   

Activity review

  • On July 12, 2017 Vermilion and CPPIB announced a strategic partnership in Corrib, whereby CPPIB will acquire Shell Exploration Company B.V.'s 45% interest in Corrib for total cash consideration of 830 million, subject to customary closing adjustments and future contingent value payments based on performance and realized pricing. At closing, Vermilion expects to assume operatorship of Corrib.  In addition to operatorship, CPPIB plans to transfer a 1.5% working interest to Vermilion for 19.4 million ($28.4 million), before closing adjustments.  Vermilion's incremental 1.5 ownership of Corrib would represent approximately 850 boe/d (100% gas) based on 2017 production expectations for Corrib.  The acquisition has an effective date of January 1, 2017 and is anticipated to close in the first half of 2018
  • There is limited capital activity planned for 2017.

Please see our Q2 2017 Report for further information