Vermilion Vitality Inc. has entered right into a definitive settlement for the sale of its U.S. belongings for money proceeds of ~$88 million ($120 million CAD).
Proceeds from the transaction will go in direction of debt compensation to additional speed up deleveraging efforts and strengthen the corporate’s stability sheet, Vermilion acknowledged.
The belongings consist of roughly 5,500 boed (81% oil and liquids) of manufacturing and roughly 10 MMboe of proved developed producing reserves estimated as evaluated by McDaniel & Associates Consultants Ltd. as of December 31, 2024.
The transaction has an efficient date of January 1, 2025 and is anticipated to shut in Q3 2025, topic to the satisfaction of different customary closing circumstances. The transaction settlement contains $10 million of contingent funds based mostly on WTI costs over the two-year interval beginning July 1, 2025.
“This transaction, mixed with the sale of our East Finn belongings in 2023, completes our exit from the USA, permitting us to give attention to our core gas-weighted belongings in Canada and Europe,” Vermilion mentioned in a press release.