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Vermilion is an international energy producer focused on acquisition, exploration, development and optimization of its producing properties in North America, Europe and Australia.
Vermilion Energy (TSX:VET,NYSE:VET) has released the report containing operating and condensed financial results for the three and six month periods that ended June 30, 2018.
Vermilion is an international energy producer focused on acquisition, exploration, development and optimization of its producing properties in North America, Europe and Australia.
As quoted from the press release:
Highlights
- On May 28, 2018, Vermilion acquired all of the issued and outstanding common shares of Spartan Energy Corp. (TSX:SPE), a publicly traded southeast Saskatchewan oil producer. Total consideration for the acquisition was C$1.4 billion consisting of the issuance of 27.9 million Vermilion common shares valued at approximately C$1.2 billion (based on the closing price per Vermilion common share of C$44.30 on the Toronto Stock Exchange on May 28, 2018) and the assumption of approximately C$175 million of Spartan’s outstanding debt at the time the transaction closed.
- Q2 2018 production increased by 15 percent from the prior quarter to 80,625 boe/d. The increase was primarily due to the Spartan acquisition and production added from our Q1 2018 drilling program.
- Fund flows from operations for Q2 2018 was C$193 million ($1.43/basic share(1)), an increase of 23 percent from the prior quarter driven by higher production volumes and higher commodity prices, partially offset by hedging losses. Year-over-year, FFO increased 31 percent as compared to Q2 2017 on higher production and commodity prices.
- In Canada, production averaged 43,817 boe/d in Q2 2018, representing a 37 percent increase from the previous quarter primarily due to the Spartan acquisition. Production also benefited from our successful Q1 drilling program and less weather-related downtime and planned maintenance on third party infrastructure as compared to Q1 2018.
- In France, Q2 2018 production averaged 11,683 boe/d, an increase of 6 percent from the prior quarter. The increase was primarily due to production additions following the completion of our Q1 2018 drilling program in the Neocomian and Champotran fields and several workovers performed during the first half of the year.
- In the Netherlands, production averaged 7,335 boe/d in Q2 2018, which was down 3 percent from the prior quarter. Subsequent to the end of the second quarter, we received approval for the production permit on the Eesveen-02 well. The well is expected to come on production in mid-August 2018.