Vermilion Energy

Vermilion Energy Inc.

Type	Public
Traded as	TSX: VET NYSE: VET
Industry	Petroleum
Founded	1994
Headquarters	Calgary, Alberta, Canada
Key people	Lawrence Macdonald,chair Lorenzo Donadeo,ceo Anthony Marino,pres,coo Curtis W. Hicks,cfo,exec vp John D. Donovan,exec vp bd
Products	Oil, natural gas
Revenue	C$1,419.6 mil 201411.4%[1]
Net income	C$269.3 mil 2014[1]17.8%[1]
Total assets	C$4,386.1 mil dec14 18.3%[1]
Website	vermilionenergy.com

Vermilion Energy is an international oil and gas producer with operations in North America, Europe and Australia. Vermilion pays a monthly dividend of Canadian $0.215 per share, which provides a current yield of approximately 8%. Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.

History

Vermilion began in 1994 as Vermilion Resources Ltd, an Alberta focused oil and gas company. Vermilion had its initial public offering on the Alberta Stock Exchange in April 1996 for $0.10 per share.^[2]

The company changed its status to that of a trust in December 2002 when it became known as Vermilion Energy Trust for eight years; In September 2010, it converted back to a corporation.^[3]

In March 2013, Vermilion began trading on the NYSE under the ticker symbol "VET".

Operations

In Canada, Vermilion's operations are focused in the West Pembina/Drayton Valley region of Alberta and the Northgate Region of southeast Saskatchewan. In West Pembina, Vermilion has the potential for three significant development projects sharing the same surface infrastructure:

• Cardium light oil development (1,800 m depth)
• Mannville liquids-rich gas inventory (2,400 - 2,700 m depth)
• Extensive position in Duvernay liquids-rich gas resource play (3,200 - 3,400 m depth)^[4]

Vermilion acquired approximately 68,000 acres of land (98% undeveloped) in the Powder River Basin of northeastern Wyoming in 2014. This includes 53,000 net acres (70% working interest) in the promising Turner Sands tight-oil play.^[5]

After entering the country in 1997, Vermilion has grown to become the largest oil producer in France, with record annual oil production of 11,011 bbls/d in 2014. The company estimates there are more than 1.7 billion barrels of original oil in place in the five biggest conventional oil pools. ^[6]

Vermilion entered the Netherlands in 2004 and has since expanded its undeveloped land base to cover approximately 800,000 net acres.^[7] The Netherlands is characterized by high impact natural gas drilling and development. Vermilion's natural gas production in the Netherlands is priced of Title Transfer Facility (TTF).

Vermilion acquired a 25% contractual participation interest in a four partner consortium in Germany from GDF Suez S.A. in February 2014. The assets include 4 natural gas producing fields across 11 production licenses, spanning 204,000 gross acres.^[8]

Vermilion acquired a 18.5% non-operated stake in the Corrib field from Marathon Oil Corp in 2009. The other partners in the project are Shell with 45.5% (project operator) and Statoil with 36.5%. Corrib is the only new planned natural gas supply in Ireland. The Corrib project supply 60-65% of the country's natural gas demand and over 90% of the country's natural gas production. First-gas from Corrib is anticipated to come on-stream mid-2015 with expected peak production of 58 mmcf/d (9,700 boe/d) net to Vermilion.^[9]

Wandoo is Vermilion's Australian asset, an offshore oil field and platform approximately 80 kilometers off the northwest coast of Australia. Wandoo production receives a premium to Brent Crude pricing.^[10] Vermilion originally purchased a 60% operated interest in Wandoo in 2005. The company then purchased the remaining 40% interest in Wandoo in 2007.^[11]

External links

• Vermilion Energy Official Site
• Vermilion Energy LinkedIn Page

References