- Vermillion Energy (VET) closed its latest major acquisition Monday, adding to its natural gas assets
- As part of the deal, Vermillion now gains control over and additional 36.5 percent interest in the Corrib Natural Gas Project in Ireland
- The deal is with Equinor ASA, a Norwegian firm, and is valued at C$556 million
- Vermillion now controls a total of 56.5 percent in the massive natural gas project
- Vermillion Energy (TSX:VET) is up 4.05 percent, trading at $18.24 at 11:50 a.m.
Vermillion Energy (VET) closed its latest major acquisition Monday, adding to its natural gas assets.
The Calgary-based oil and gas company finalized its acquisition of Equinor Energy Ireland Limited.
The deal is with Equinor ASA, a Norwegian firm, and is valued at C$556 million.
As part of the deal, Vermillion now gains control over and additional 36.5 percent interest in the Corrib Natural Gas Project in Ireland. Vermillion now controls a total of 56.5 percent in the massive natural gas project.
The acquisition makes the company the largest provider of domestic natural gas in Ireland.
Numbers are already incorporated into Vermillion’s 2023 production guidance.
The acquisition will give it approximately 7,000 barrells of oil equivalent per day of premium, high netback, low emission European natural gas.
The Coribb Project encompasses a low-emission natural gas facility comprised of a conventional gas field located 83 kilometres off the northwest coast of Ireland and a state of the art gas processing plant onshore Ireland.
The facility has a gross plant capacity of approximately 350 million cubic feet of natural gas per day and is currently producing 115 million cubic feet of natural gas per day, representing approximately 20 percent of Ireland’s natural gas consumption and 100 percent of Ireland’s domestic gas production.
Vermillion has served as the project’s operator since 2018, reducing costs in that time and increasing output.
Vermilion has been operating internationally for over 26 years and continues trying to diversify its asset base.
This fiscal year, the company is continuing to focus on increasing the return of capital to its shareholders as debt levels decrease.
Vermillion Energy (TSX:VET) is up 4.05 percent, trading at $18.24 at 11:50 a.m.
