Canada’s Vermilion acquires Alberta player for $750 million

Canada

CALGARY, December 24, 2024 – Canada’s Vermilion Energy has acquired Alberta oil and gas player Westbrick Energy for around USD 750 million, Vermilion announced on Monday.

With the deal, Vermilion builds on its portfolio in Alberta’s Deep Basin, a natural gas sand play located on the northeastern front of the Canadian province’s Rocky Mountain belt.

Westbrick brings around 4,452 (around 3,116 net) square kilometres of land and four operated gas plants with a total capacity of 2.89 mcm (102 mcf) per day in the southeast portion of the Deep Basin.

The assets are “contiguous and complementary to Vermilion’s legacy Deep Basin assets, providing significant operational and financial synergies,” Vermilion said.

Vermilion anticipates 2025 production from the assets of 50,000 boepd, including 75% gas and 25% liquids.

The acquisition excludes undeveloped rights in Alberta’s Duvernay Formation on approximately 1,214 square kilometres of land, which will be retained by Westbrick shareholders.

The deal will make Vermilion the fifth-largest producer in the Deep Basin.

Vermilion Energy is an upstream player active in North America, Europe and Australia.

The company focuses on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia.

Photo courtesy of Vermilion Energy.