Vermilion Energy purchased $345 million in Saskatchewan acreage and other assets in mid-March 2014 from an undisclosed seller. With the acquisition, Vermilion establishes a long sought after core area in the Williston Basin. The assets include some Bakken and Three Forks properties.
“In a company statement, Vermilion officials stated, “we have been evaluating producing entry opportunities into this prolific area for an extended period of time, but had not previously been able to structure a transaction that met the stringent requirements of our dividend growth model.”
Vermilion Acquisition Details
Assets include approximately 57,000 net acres of land (approximately 80% undeveloped) covering the Midale, Frobisher, Bakken and Three Forks/Torquay formations. Production from the assets is projected to be approximately 3,750 boe/d (97% crude oil) during 2014. More than 90% of the current production base will be operated by Vermilion.
Vermilion Drilling and Development from Acquired Assets
The majority of production and development drilling opportunities from the acquisition will be from the Midale formation, with additional opportunities in the Frobisher, Bakken and Three Forks/Torquay formations. The company has identified 175 (152 net) potential drilling locations collectively targeting these formations. Total proved and proved plus probable reserves attributed to the Assets at the end of February 2014 were 10.3 mmboe (81% crude oil and natural gas liquids) and 16.5 mmboe (81% crude oil and natural gas liquids), respectively.
Read more at vermilionenergy.com