Vermilion entered Australia in 2005 by acquiring a 60% operated interest in the Wandoo field.
The Wandoo field is located approximately 80 km off the northwest shelf of Australia.
In 2007, we acquired the remaining 40% interest. Production is from two operated off-shore platforms, one of which (Wandoo B) is permanently staffed. Since acquiring the Wandoo asset, Vermilion has conducted a number of drilling campaigns with the long-term goal of managing production volumes to targets while meeting long-term supply requirements of our customers. Many of the wells drilled at Wandoo are extreme long-reach lateral wells. While having true vertical depths of only 600 metres, two recently sidetrack wells have measured depths of nearly 3,000 metres and 3,800 metres, respectively. Vermilion’s Australian headquarters are located in Perth.
In Canada, Vermilion is a key player in the highly productive Mannville condensate-rich gas play. In addition, we hold a dominant land position in the West Pembina Cardium resource play, in the Peace River Arch in British Columbia and Alberta and have a high-working interest position in southeast Saskatchewan. In the United States, Vermilion has a significant land position in the promising Turner Sand play in the Powder River Basin. Our North American assets represent approximately 60% of our total corporate production.
Vermilion’s European assets consist of onshore and offshore operations that deliver premium commodity pricing through Brent-priced light oil production and European natural gas prices trade at a significant premium to North American benchmarks. Our European assets contribute approximately one-third of total corporate production.
Vermilion holds a 100% working interest in the Wandoo field, offshore Australia. Vermilion’s Australian oil production receives premium pricing due to Brent-indexing and the strong, long-term, strategic relationships we have cultivated with our key customers in the region.