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Vermilion Energy Inc. Announces the Assumption of Operatorship of the Corrib Project
Vermilion Energy Inc. Announces the Assumption of Operatorship of the Corrib Project ...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nVermilion Energy Inc. Announces the Assumption of Operatorship of the Corrib Project\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Nov. 30, 2018\n\n\n\nCALGARY, Nov. 30, 2018 /CNW/ - Vermilion Energy Inc. (\"Vermilion\") (TSX, NYSE: VET) is pleased to announce the completion of the sale of Shell Overseas Holdings Limited's (\"Shell\") 45% interest in the Corrib Natural Gas Project in Ireland (\"Corrib\") to Nephin Energy Holdings Limited (NEHL), a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB), and the transfer of operatorship to Vermilion.  NEHL has acquired 100% of Shell E&P Ireland Limited (\"SEPIL\"), which holds 45% interest in Corrib (the \"Acquisition\").\nEffective immediately, Vermilion has assumed contract operatorship of Corrib on behalf of the joint venture partners.  CPPIB plans to transfer SEPIL along with a 1.5% working interest to Vermilion.  This transfer has received all required government approvals and is expected to be completed in the coming weeks.  The estimated purchase price after interim period adjustments is approximately €6 million. \nFollowing the transfer to Vermilion, ownership in Corrib will be as follows:\nVermilion will hold a 20% operated interestNEHL will hold a 43.5% non-operated interest Equinor (formerly Statoil) continues to hold a 36.5% non-operated interestVermilion's incremental 1.5% ownership of Corrib represents approximately 700 boe/d at current production rates and approximately 1.8 million boe of 2P reserves(1) based on an independent evaluation by GLJ Petroleum Consultants Ltd. with an effective date of December 31, 2017.  Based on a final purchase price of €6 million ($9.1 million at current exchange rates), the transaction metrics are estimated at approximately $13,000 per boe per day, $5.05 per boe of proved plus probable reserves(1) including future development capital (generating a 2P recycle ratio of 9.4 times based on projected 2018 netbacks(2)), and 0.7 times estimated 2018 operating cash flow(2) using the curr...