|Traded as||NASDAQ: VEMTF TSX: VET|
|Headquarters||Calgary, Alberta, Canada|
Curtis W. Hicks,cfo,exec vp
Anthony Marino,coo,exec vp
John D. Donovan,exec vp bd
|Products||Oil, natural gas|
|Revenue||C$727.805 mil 201013.76%|
|C$111.263 mil 201040.0%|
|Total assets||C$2,581.76 mil dec10
23.84% yoy,cur 343.099 mil
|Total equity||C$1.3006 bil sep1025.1%|
Vermilion Energy is a Western Canadian Sedimentary Basin, Europe and Australia focused petroleum and natural gas (on and offshore) company. In Europe it maintains an operational presence in France (it is France's largest oil producer), the Netherlands and Ireland.
In 1999 subsidiary Aventura Energy made one of the largest onshore gas discoveries in Trinidad. Aventura Energy (in which Vermilion held a 72% interest at the time, 33% more than it did initially) was sold to BG Group (formerly British Gas) in March 2004 for $228 million (BG Group desired Aventura's assets in Trinidad and Tobago). In 2010 the company lowered long term debt by $142.7 million after increasing it by $37.053 million the year before.
Vermilion began in 1994 as Vermilion Resources Ltd, an Alberta focused oil and gas company. It later expanded abroad, first in France in 1997 (purchased assets from ExxonMobil for $45 million) where it eventually became the country's largest domestic producer. Since that time oil production (shale oil and gas) there has gradually risen, from 3800 boe/d to 9246 boe/d today. Exxon's operational presence in France was bought out in July 2006; oil production and exploration in that region of France (Chaunoy) goes back to the early 1980s.
The company changed its status to that of a trust in December 2002 when it became known as Vermilion Energy Trust for eight years; In September 2010 it renamed Vermilion Energy Inc. following conversion to a corporation. In 2002 when it converted to an income trust subsidiary Clear Energy (now known as Sure Energy) became an independent company.
Venerex Energy Inc. (owns half of Libya's biggest oil deposit) was 42.4% owned by Vermilion before its sale in 2009. At first China National Petroleum Corporation was considering taking it over for $499 million but in the end it was acquired by the Libyan Investment Authority for $316 million (30% lower than the Chinese offer). The Chinese deal was blocked by Libya's national oil company. Venerex Energy was started by Vermilion Energy Trust in 2004 after winning right to exploration properties in Libya's Ghadames Basin.
Six acquisitions were made between 1997 and 2009 (none between 2008 and 2010).
The 18.5% interest it has in the Corrib Field of Ireland was acquired in 2009. When it begins operating Corrib could meet as much as 65% of Ireland's domestic gas demand.
Assets and production
Total production was 34,676 boe/d in the third quarter of 2011 (June to September) that compares to 31,298 boe/d in the third quarter of 2010, 30,418 boe, 31,927 boe and 32,172 in the corresponding third quarters of previous years (previous years included assets that the company has since divested, the sale of properties in Libya makes it less exposed to risky assets). Average production for the first 9 months of 2010 was 31,036 (31,860 in 2009) 56.2% of which was crude oil (compared to 57.9% in 2009).
France - 1.1 billion barrels of initial oil in place in the three biggest oil pools (company estimate). The Paris basin which holds a sizeable resource of shale oil, may be larger than Canada Bakken shale oil field. 23% of all production comes from France, 8,108 b/d 98% of which is oil (3Q 2011).
Harlingen, Netherlands - In 2009 there were 36 net oil wells producing over 3500 boe/d, mostly natural gas liquids (NGL). (40.7% less than when it first moved into the area in 2004). Total output is 5,589 boe/d 16% of total production (3Q 2011).
Australia - produced 7812 boe/d in 2009 a 62% increase in four years (partly credited to the an improved fluid handling capacity at the Wandoo field, Wandoo is 100% owned since 2007). Reserve life of 7.6 years. In the third quarter of 2011 Australia contributed 23% of supply (7,992 boe/d).
Ireland - the company expects growth in production here in the near future (2012) due to production commencing at the Corrib field (300 million cubic feet of natural gas per day). The Corrib field is the source of over 90% of Ireland's natural gas used. June 2009 acquired 18.5% of Marathon Oil Corp interest in Corib (Vermilion is Corrib's third largest shareholder behind Shell (45.5%) and Statoil (36.0%). In 2011 the company's plan to start operating at Corrib was pushed back until 2014 at the earliest.
Canada - is currently the largest source of total production (most of it coming from central and northern Alberta), contributing more than 11,600 boe per day in 2009 (7,975 boe as natural gas), Utikuma light oil field in Alberta is top five among Vermilion's properties in terms of total resource. In Canada the company also controls 5 natural gas plants and 5 oil processing facilities. Drayton Valley's Cardium and Liquids Rich Tight Gas are a couple of large resource fields in the country. Production had grown to 12,987 boe/d by the third quarter of 2011.
- "Vermilion Energy 2010 Annual Financial Report" (PDF). 2011-02-28.
- "Investing in the Paris Basin Shale Oil Play". 2010-09-17.
- "GB Group offers$228 million for Aventura Energy". CBC News. 2004-03-22.
- "A small exploration boom hits France's Paris basin; area to become France's top producer". 1985-06-26.
- "The Manitoba Securities Commission". 2003-01-22.
- "Sept 10 EnerVest Diversified Monthly Investor Report" (PDF). 2010.
- Swartz, Spencer (2009-09-20). "Venerex Agrees to Libya Government Buyout, Shareholders May Block Deal". The Wall Street Journal.
- "Calgary-based Venerex snapped up". 2009-02-16.
- "Vermilion Energy Inc. Mergers and Acquisitions". Retrieved 2010-12-04.
- "Vermilion Energy 2011 November presentation" (PDF). Retrieved 2011-12-09.
- "Vermilion Energy 2010 Third Quarter Report" (PDF). 2010-11-05.
- "Investing in the Paris Basin Shale Oil Play". 2010-09-07.