Vermilion Energy Inc. announced the closing of its acquisition of Westbrick Energy Ltd., as per the arrangement agreement dated December 22, 2024. This acquisition significantly enhances Vermilion's footprint in the Deep Basin trend in Alberta.
The acquisition adds an anticipated 50,000 boe/d of stable annual production, composed of 75% gas and 25% liquids, along with approximately 1.1 million (770,000 net) acres of land. This includes four operated gas plants with a total capacity of 102 mmcf/d, which are contiguous and complementary to Vermilion's existing Deep Basin assets.
Vermilion has identified over 700 future drilling locations on the acquired acreage, with half-cycle internal rates of return ranging from 40% to over 100%. The consideration for the acquisition included 1.1 million Vermilion common shares valued at $14.2 million, with the remainder paid in cash, funded through cash on hand, a new $450 million term loan, and the undrawn $1.35 billion revolving credit facility.
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