Business
Vermilion Energy Inc. Announces Results for the Three and Six Months Ended June 30, 2015
CALGARY , Aug. 10, 2015 /CNW/ - Vermilion Energy Inc. ("Vermilion", "We", "Our", "Us" or...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\nCALGARY, Aug. 10, 2015 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", \"We\",\n \"Our\", \"Us\" or the \"Company\") (TSX, NYSE: VET) is pleased to report\n operating and unaudited financial results for the three and six months\n ended June 30, 2015.\n\n\nHIGHLIGHTS\n\n\n\nAverage production of 51,831 boe/d for Q2 2015 exceeded prior quarter\n production of 50,386 boe/d by 3%.  The quarter-over-quarter increase\n was primarily due to successful drilling and workovers in France. \n Canadian operations also contributed to the production increase through\n successful drilling and higher volumes from the commissioning of a\n natural gas processing facility in Saskatchewan in the prior quarter. \n Partially offsetting these favorable impacts was the planned\n maintenance shutdown at our largest natural gas processing facility in\n the Netherlands.  Mid-stream and facility restrictions in Canada\n continued to negatively impact our production volumes in the second\n quarter of 2015.\n\n\n\n\nFund flows from operations (\"FFO\")(1) for Q2 2015 of $129.5 million ($1.18/basic share) represented an\n increase of 7% quarter-over-quarter. The increase in FFO from the prior\n quarter was attributable to higher oil prices, an inventory draw in\n Australia (due to the timing of crude liftings) as well as higher\n production in France, Australia and Canada.\n\n\n\n\nFollowing a comprehensive review of 2015 development capital\n opportunities, Vermilion has elected to proceed with a two-well\n Australian sidetrack program and to also provide modest incremental\n capital funding for projects in Canada and France.  The Australian\n drilling program was previously deferred as part of our reduction in\n planned 2015 capital expenditures for exploration and development\n (\"E&D).  Despite the recent renewed downturn in oil prices, the strong\n economics and operational efficiencies now associated with the\n Australia sidetrack program are sufficiently compelling to reinstate\n funding for the project.  Accordingly, Vermilion now expects E&D\n capital spending for 2015 of approximately $485 million, an increase of\n $70 million from our previous capital guidance of $415 million (but\n less than our original 2015 E&D capital budget of $525 million and 2014\n E&D capital expenditures of $688 million...