Vermilion’s geographically advantaged Alberta assets feature the potential for significant resource plays sharing the same surface infrastructure in the West Pembina region in Alberta.
The Mannville play is a multizone development that occurs at depths of approximately 2,400 metres to 2,700 metres. We hold over 250,000 net acres of Mannville rights, which are largely held by production. Our land position includes condensate-rich Mannville acreage around the Drayton Valley area as well as high-productivity, liquids-rich gas acreage near Ferrier. Since starting development of the Mannville play in 2013, we have only drilled a small portion of our Mannville inventory, providing us with significant future growth potential.
Vermilion holds a dominant 100,000 net acre land position in the West Pembina Cardium resource play. The play is a light oil development project employing horizontal wells with multistage completions. We control key infrastructure including a 15,000 bbl per day oil battery that we commissioned in 2011 to process the ongoing volumes associated with the development of the play, as well as two owned and operated gas plants.
Vermilion began actively developing the Cardium play in 2010. Throughout this development cycle, we have made significant strides in improving play economics by working closely with service providers, changing completion methodology from hydrocarbon based-fractures to water-based fractures and drilling longer reach wells. Vermilion still holds a significant inventory of undrilled prospects in reserves and resources.
Southeast Saskatchewan and Southwest Manitoba
Vermilion entered southeast Saskatchewan through the acquisition of a private company in April 2014 and we significantly expanded our position with our acquisition of Spartan Energy Corp. in May 2018. Our land base covers approximately 450,000 net acres at an average working interest of approximately 85%. Much like our West Pembina area in Alberta, southeast Saskatchewan and southwest Manitoba provide the opportunity for multizone development. Our targets are the Mississippian Midale formation, along with the Frobisher/Alida and Ratcliffe formations.
Vermilion entered British Columbia in 2022 with the acquisition of Leucrotta Exploration Inc. The primary asset is the Mica property in the Peace River Arch, which straddles the Alberta and British Columbia border. Vermilion targets tight oil and shale gas in the Montney formation.
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.