CALGARY, Dec. 30, 2015 /PRNewswire/ - Vermilion
Energy Inc. ("Vermilion", "the Company", "We", "Us", or "Our")
(TSX, NYSE: VET) is pleased to announce that natural gas began to
flow at our Corrib gas project in Ireland on December 30,
2015. Production levels at Corrib are expected to rise
over a period of approximately six months to a peak rate estimated
at 58 mmcf/d (9,700 boe/d), net to Vermilion.
"First gas marks an important milestone for Vermilion" said
Lorenzo Donadeo, CEO of Vermilion.
"Corrib will be a significant contributor to both our 2016 and 2017
production growth and generate meaningful free cash flow for the
Company. Corrib strengthens our focus on Europe and provides us with operational
momentum in an area where we are becoming a dominant intermediate
producer. Moreover, it is good news for Ireland. Corrib
will improve the security of natural gas supply in the Irish market
and will bring long-term benefits and employment to the Irish
economy."
Corrib production is priced in reference to the National
Balancing Point (NBP) in the United
Kingdom and will increase Vermilion's exposure to
advantageously-priced European natural gas production. We
anticipate that European-based natural gas will represent
approximately 30% of our 2016 production volumes.
Corrib is a world class natural gas field located approximately
83 km off the northwest coast of Ireland. The field is
believed to contain approximately 1 trillion cubic feet of natural
gas reserves.
Notes to Editors
- The Corrib project is a joint venture between Shell E&P
Ireland Limited (45%), Statoil Exploration Ireland Limited (36.5%),
and Vermilion Energy Ireland Limited (18.5%). Shell E&P Ireland
Limited is the operator of the project.
- At peak production, the Corrib field has the potential to meet
up to 60% of Ireland's gas
needs.
- Six production wells are available in the Corrib field, which
is located in water depths of approximately 350 m and lies
approximately 3,000 m below the seabed.
- Natural gas is transported from the field through a 20-inch
pipeline to the Bellanaboy Bridge Gas Terminal in northwest Mayo
where it is processed before being transferred to the Gas Networks
Ireland (GNI) national gas grid for distribution to Irish gas
consumers.
- More than 6,000 people have worked on the development of the
Corrib field.
More information on the Corrib project is available online at:
www.shell.ie
Further information regarding the benefits associated with the
Corrib project in Ireland is
available online at: www.shell.ie/progress
About Vermilion Energy Inc.
Vermilion is an international energy producer that seeks to
create value through the acquisition, exploration, development and
optimization of producing properties in North America, Europe and Australia. Our business model targets
annual organic production growth along with providing reliable and
increasing dividends to investors. Vermilion is targeting
growth in production primarily through the exploitation of light
oil and liquids-rich natural gas conventional resource plays in
Canada and the United States, the exploration and
development of high impact natural gas opportunities in
the Netherlands and Germany, and through drilling and workover
programs in France and
Australia. Vermilion also holds an 18.5% working interest in
the Corrib gas field in Ireland. Vermilion pays a monthly
dividend of Canadian $0.215 per
share, which provides a current yield of approximately 7%.
Management and directors of Vermilion hold approximately 6% of the
outstanding shares, are committed to consistently delivering
superior rewards for all stakeholders, and have delivered a 20-year
history of market outperformance. Vermilion trades on the
Toronto Stock Exchange and the New York Stock Exchange under the
symbol VET.
SOURCE Vermilion Energy Inc.