CALGARY, Feb. 28, 2019
/PRNewswire/ - Vermilion Energy Inc. ("Vermilion", "We", "Our",
"Us" or the "Company") (TSX, NYSE: VET) is pleased to report
operating and financial results for the year
ended December 31, 2018 along with our 2018 reserves and
resources information.
The audited financial statements, management discussion and
analysis, and annual information form for the year
ended December 31, 2018, will be available on the System
for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml, and on
Vermilion's website at www.vermilionenergy.com.
Highlights
- Q4 2018 production averaged 101,621 boe/d, representing a 6%
increase over the prior quarter, primarily due to strong
performance from our Netherlands,
Canadian and US business units.
- 2018 production increased by 28% year-over-year to 87,270 boe/d
(10% on a per share basis), within 1% of the mid-point of our
guidance range.
- Fund flows from operations ("FFO")(1) for Q4 2018
was $222 million ($1.46/basic share(1)), down 15% from
the previous quarter as higher production was more than offset by
lower commodity prices. FFO in 2018 was $839
million ($5.96/basic
share(1)), an increase of 39% from the prior year (19%
on a per share basis), due to higher production volumes and
commodity prices, which were partially offset by $111 million of realized hedging losses.
- Net earnings in 2018 were $272
million ($1.93/basic share),
representing a 336% increase over the prior year (271% on a per
share basis). We generated a Return on Capital
Employed(1) ("ROCE") of 9%, compared to our 5-year
average ROCE of 4%.
- Production in the Netherlands
in Q4 2018 averaged 8,749 boe/d, an increase of 17% from the prior
quarter. The increase is primarily due to the benefit of a full
quarter contribution from the Eesveen-02 well (60% working
interest), which we brought on production late in the third quarter
at a restricted rate of 10 mmcf/d net.
- In Ireland, production from
the Corrib Natural Gas Project (the "Corrib Project") averaged 52
mmcf/d (8,672 boe/d) in Q4 2018, an increase of 1% from the prior
quarter. On November 30, 2018, we
assumed operatorship of the Corrib Project and completed the
transfer of Shell E&P Ireland Limited ("SEPIL") along with an
incremental 1.5% working interest in the Corrib Project to
Vermilion from Nephin Energy Holdings Limited, a wholly owned
subsidiary of Canada Pension Plan Investment Board ("CPPIB"). Cash
consideration at closing was $9
million, which was more than offset by the assumption of
$15 million in positive net working
capital associated with the acquisition.
- In Canada, production averaged
a record 60,814 boe/d in Q4 2018, representing an increase of 6%
from the previous quarter. The increase was primarily due to new
well completions in both our southeast Saskatchewan assets and Alberta assets.
- In the United States, Q4 2018
production averaged 3,545 boe/d, an increase of 19% from the prior
quarter, due to a full quarter of production associated with the
Powder River Basin acquisition completed in the prior
quarter.
- In Australia, production
averaged 4,174 bbl/d in Q4 2018, down 11% from the previous quarter
primarily due to a planned shutdown for maintenance and other
downtime which was required to allow drilling of two new wells. We
commenced drilling of the B15 and B16 wells in early November 2018 and completed the wells in late
January 2019. The wells were tested
in February 2019. The B15 well tested
at an oil rate of 8,800 bbls/d over a 48-hour period and the B16
well tested at an oil rate of 7,600 bbls/d over a 36-hour
period(2). We plan to intermittently produce the new
wells at restricted rates to maximize long-term value.
- Our 2018 reserves as evaluated by GLJ as at December 31, 2018 are as follows:
-
- Proved plus probable ("2P") reserves increased 63% from
year-end 2017 to 488.1(3) mmboe. We replaced 187% of 2P
reserves through development activities and 695% including
acquisitions. Our 2P finding and development ("F&D")
cost(4) was $7.79 per boe,
including future development capital ("FDC")(4),
resulting in an organic 2P Operating Recycle Ratio(5)
(including FDC) of 4.1x compared to 2.8x in 2017.
- Proved ("1P") reserves increased 69% from year-end 2017 to
298.2(3) mmboe. We replaced 157% of 1P reserves through
development activities and 481% including acquisitions. Our 1P
F&D cost was $13.49 per boe,
including FDC, resulting in an organic 1P Operating Recycle
Ratio(5) (including FDC) of 2.3x.
- Proved developed producing ("PDP") reserves increased 55% from
year-end 2017 to 192.1(3) mmboe. We replaced 130% of PDP
reserves through development activities and 314% including
acquisitions. Our PDP F&D cost was $15.65 per boe, including FDC, resulting in an
organic PDP Operating Recycle Ratio(5) (including FDC)
of 2.0x.
- Our independent 2018 GLJ Resources Report(6)
indicates risked low, best, and high estimates for contingent
resources in the Development Pending category of 156(6)
mmboe, 240(6) mmboe, and 334(6) mmboe
respectively, increases of 45%, 36% and 32% from year-end 2017. The
GLJ 2018 Resources Report also indicates risked low, best, and high
estimates for contingent resources in the Development Unclarified
category of 11(6) mmboe, 37(6) mmboe, and
53(6) mmboe respectively, increases of 47%, 13% and 15%
from year-end 2017. Over 86% of our risked contingent resources
reside in the Development Pending category. Prospective resources
were assessed at risked low, best and high estimates of
55(6) mmboe, 161(6) mmboe, and
284(6) mmboe respectively, increases of 7%, 5% and 9%
from year-end 2017. Our contingent and prospective resource bases
remain a source of reserve additions, with 17 mmboe of contingent
resources converted to 2P reserves during
2018.(6)
- Vermilion was named to the CDP Climate Leadership Level (-A)
for the second consecutive year in 2018. We were the only Canadian
oil and gas company and one of only two North American oil and gas
companies to receive this designation, ranking Vermilion in the top
5% of oil and gas companies globally. Vermilion ranked second
within the oil and gas sector, and was among the top quartile of
all companies in the S&P/TSX Composite Index in the annual
Globe and Mail Board Games evaluation for 2018. We were also a
finalist for the Finance and Sustainability Initiative's award for
Best Sustainability Report in the Non-Renewable Resources - Oil and
Gas category for our 2017 Sustainability Report, an award which we
won last year for our 2016 Sustainability Report.
(1)
|
Non-GAAP Financial
Measure. Please see the "Non-GAAP Financial Measures" section
of the accompanying Management's Discussion and
Analysis.
|
|
|
(2)
|
B15ST1 well tested
oil at an average rate of 8,769 bbls/d and zero barrels of water
per day ("bwpd") over a 48-hour period at a flowing wellhead
pressure of 900 kpa (130 psi) on a 100% open choke (130 mm or 5.1
inch diameter) with applied gas-lift of 22,000 m3/d (775
mcf/d). The well was estimated to be flowing with a 30%
drawdown of reservoir pressure.
|
|
|
|
B16ST2 well tested
oil at an average rate of 7,600 bbls/d and 770 bwpd over a 36-hour
period at a flowing wellhead pressure of 900 kpa (130 psi) on a
100% open choke (130 mm or 5.1 inch diameter) with applied gas-lift
of 45,000 m3/d (1,590 mcf/d). The well was estimated to be
flowing with a 15% drawdown of reservoir pressure.
|
|
|
(3)
|
Estimated proved and
proved plus probable reserves as evaluated by GLJ Petroleum
Consultants Ltd. ("GLJ") in a report dated February 7, 2019 with an
effective date of December 31, 2018 (the "2018 GLJ Reserves
Report").
|
|
|
(4)
|
F&D (finding and
development) and FD&A (finding, development and acquisition)
costs are used as a measure of capital efficiency and are
calculated by dividing the applicable capital expenditures for the
period, including the change in undiscounted FDC (future
development capital), by the change in the reserves, incorporating
revisions and production, for the same period.
|
|
|
(5)
|
Operating Recycle
Ratio is a measure of capital efficiency calculated by dividing the
Operating Netback by the cost of adding reserves (F&D
cost). Operating Netback is calculated as sales less
royalties, operating expense, transportation costs, PRRT and
realized hedging gains and losses presented on a per unit
basis.
|
|
|
(6)
|
Vermilion retained
GLJ to conduct an independent resource evaluation dated February 7,
2019 to assess contingent and prospective resources across all of
the Company's key operating regions with an effective date of
December 31, 2018 (the "GLJ 2018 Resources Report"). The
aggregate associated chance of development for each of the low,
best and high estimate for contingent resources in the Development
Pending category are 82%, 81% and 81%, respectively. The
aggregate associated chance of commerciality for each of the low,
best and high estimate for prospective resources in the Prospect
category are 24%, 23% and 24%, respectively. There is
uncertainty that it will be commercially viable to produce any
portion of the resources. Project maturity subclass
development pending is defined as contingent resources where
resolution of the final conditions for development is being
actively pursued (high chance of development. Project
maturity subclass development unclarified is defined as contingent
resources when the evaluation is incomplete and there is ongoing
activity to resolve any risks or uncertainties. Prospective
resources are defined as those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from unknown
accumulations by application of future development projects.
There is no certainty that it will be commercially viable to
produce any portion of the contingent resources or that Vermilion
will produce any portion of the volumes currently classified as
contingent resources. There is no certainty that any portion
of the prospective resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the prospective resources or that
Vermilion will produce any portion of the volumes currently
classified as prospective resources. Please refer to
Vermilion's 2018 Annual Information Form for further information on
Vermilion's contingent resources and prospectus
resources.
|
|
|
|
|
|
|
|
|
|
|
|
($M except as
indicated)
|
Q4
2018
|
|
Q3
2018
|
|
Q4
2017
|
|
|
2018
|
|
2017
|
Financial
|
|
|
|
|
|
|
|
|
|
|
Petroleum and natural
gas sales
|
456,939
|
|
508,411
|
|
317,341
|
|
|
1,678,117
|
|
1,098,838
|
Fund flows from
operations
|
222,342
|
|
260,705
|
|
181,253
|
|
|
838,652
|
|
602,565
|
Fund flows from
operations ($/basic share) (1)
|
1.46
|
|
1.71
|
|
1.49
|
|
|
5.96
|
|
5
|
Fund flows from
operations ($/diluted share) (1)
|
1.44
|
|
1.69
|
|
1.47
|
|
|
5.89
|
|
4.92
|
Net earnings
(loss)
|
323,373
|
|
(15,099)
|
|
8,645
|
|
|
271,650
|
|
62,258
|
Net earnings (loss)
($/basic share)
|
2.12
|
|
(0.1)
|
|
0.07
|
|
|
1.93
|
|
0.52
|
Capital
expenditures
|
163,580
|
|
146,185
|
|
74,303
|
|
|
518,214
|
|
320,449
|
Acquisitions
|
2,689
|
|
198,173
|
|
3,048
|
|
|
1,759,425
|
|
27,637
|
Asset retirement
obligations settled
|
6,562
|
|
2,986
|
|
3,216
|
|
|
15,765
|
|
9,334
|
Cash dividends
($/share)
|
0.690
|
|
0.690
|
|
0.645
|
|
|
2.715
|
|
2.580
|
Dividends
declared
|
105,310
|
|
105,192
|
|
78,653
|
|
|
388,111
|
|
311,397
|
% of fund flows from
operations
|
|
47%
|
|
|
40%
|
|
|
43%
|
|
|
|
46%
|
|
|
52%
|
Net dividends
(1)
|
100,195
|
|
100,872
|
|
56,836
|
|
|
339,060
|
|
200,904
|
% of fund flows from
operations
|
|
45%
|
|
|
39%
|
|
|
31%
|
|
|
|
40%
|
|
|
33%
|
Payout
(1)
|
270,337
|
|
250,043
|
|
134,355
|
|
|
873,039
|
|
530,687
|
% of fund flows from
operations
|
|
122%
|
|
|
96%
|
|
|
74%
|
|
|
|
104%
|
|
|
88%
|
Net debt
|
1,929,529
|
|
2,034,086
|
|
1,371,790
|
|
|
1,929,529
|
|
1,371,790
|
Ratio of net debt to
annualized fund flows from operations
|
2.17
|
|
1.95
|
|
1.89
|
|
|
2.30
|
|
2.28
|
Operational
|
Production
|
|
|
|
|
|
|
|
|
|
|
Crude oil and
condensate (bbls/d)
|
47,678
|
|
47,152
|
|
27,830
|
|
|
39,182
|
|
27,721
|
NGLs
(bbls/d)
|
7,815
|
|
6,839
|
|
5,279
|
|
|
6,366
|
|
4,194
|
Natural gas
(mmcf/d)
|
276.77
|
|
253.38
|
|
238.27
|
|
|
250.33
|
|
216.64
|
Total
(boe/d)
|
101,621
|
|
96,222
|
|
72,821
|
|
|
87,270
|
|
68,021
|
Average realized
prices
|
|
|
|
|
|
|
|
|
|
|
Crude oil and
condensate ($/bbl)
|
66.19
|
|
85.84
|
|
74.12
|
|
|
79.16
|
|
67.00
|
NGLs
($/bbl)
|
25.69
|
|
27.97
|
|
29.28
|
|
|
26.33
|
|
25.00
|
Natural gas
($/mcf)
|
5.83
|
|
5.35
|
|
5.23
|
|
|
5.45
|
|
4.91
|
Production mix (% of
production)
|
|
|
|
|
|
|
|
|
|
|
% priced with
reference to WTI
|
|
37%
|
|
|
37%
|
|
|
21%
|
|
|
|
32%
|
|
|
20%
|
% priced with
reference to Dated Brent
|
|
18%
|
|
|
18%
|
|
|
24%
|
|
|
|
20%
|
|
|
26%
|
% priced with
reference to AECO
|
|
26%
|
|
|
26%
|
|
|
25%
|
|
|
|
26%
|
|
|
25%
|
% priced with
reference to TTF and NBP
|
|
19%
|
|
|
19%
|
|
|
30%
|
|
|
|
22%
|
|
|
29%
|
Netbacks
($/boe)
|
|
|
|
|
|
|
|
|
|
|
Operating netback
(1)
|
27.58
|
|
34.85
|
|
30.77
|
|
|
31.59
|
|
29.24
|
Fund flows from
operations netback
|
23.79
|
|
29.69
|
|
27.13
|
|
|
26.47
|
|
24.34
|
Operating
expenses
|
12.04
|
|
11.13
|
|
9.76
|
|
|
11.26
|
|
9.79
|
Average reference
prices
|
|
|
|
|
|
|
|
|
|
|
WTI (US
$/bbl)
|
58.81
|
|
69.50
|
|
55.40
|
|
|
64.77
|
|
50.95
|
Edmonton Sweet index
(US $/bbl)
|
32.51
|
|
62.68
|
|
54.26
|
|
|
53.65
|
|
48.49
|
Saskatchewan LSB index
(US $/bbl)
|
44.03
|
|
63.35
|
|
54.04
|
|
|
56.46
|
|
47.85
|
Dated Brent (US
$/bbl)
|
67.76
|
|
75.27
|
|
61.39
|
|
|
71.04
|
|
54.27
|
AECO
($/mcf)
|
1.56
|
|
1.19
|
|
1.69
|
|
|
1.50
|
|
2.16
|
NBP ($/mcf)
|
11.03
|
|
10.95
|
|
8.70
|
|
|
10.35
|
|
7.49
|
TTF ($/mcf)
|
10.91
|
|
10.92
|
|
8.36
|
|
|
10.23
|
|
7.43
|
Average foreign
currency exchange rates
|
|
|
|
|
|
|
|
|
|
|
CDN $/US $
|
1.32
|
|
1.31
|
|
1.27
|
|
|
1.30
|
|
1.30
|
CDN $/Euro
|
1.51
|
|
1.52
|
|
1.50
|
|
|
1.53
|
|
1.46
|
Share information
('000s)
|
Shares outstanding -
basic
|
152,704
|
|
152,497
|
|
122,119
|
|
|
152,704
|
|
122,119
|
Shares outstanding -
diluted (1)
|
156,173
|
|
155,747
|
|
125,140
|
|
|
156,173
|
|
125,140
|
Weighted average
shares outstanding - basic
|
152,588
|
|
152,432
|
|
121,858
|
|
|
140,619
|
|
120,582
|
Weighted average
shares outstanding - diluted (1)
|
153,880
|
|
153,839
|
|
123,450
|
|
|
142,335
|
|
122,408
|
(1)
|
The above table
includes non-GAAP financial measures which may not be comparable to
other companies. Please see the "Non-GAAP Financial Measures"
section of Management's Discussion and Analysis.
|
Message to Shareholders
In 2018, we drilled a total of 148.9 net wells and completed
four acquisitions within our existing core areas, including the
acquisition of Spartan Energy during Q2 2018, making this our most
active year ever in terms of both organic and M&A
activity. As a result, we delivered record annual production
of 87,270 boe/d, representing a year-over-year increase of 28%, or
10% on a per share basis. Similarly, we increased our proved
plus probable reserves by 63% to 488.1 mmboe(3),
reflecting a year-over-year increase of 31% on a per share
basis.
Our 2018 acquisitions added high netback, low decline and free
cash flow(1) generating producing assets while also
significantly expanding our future project inventory. We are
very disciplined in our M&A approach and apply a rigorous
strategic framework, comprehensive technical evaluation
methodology, and consistent decision criteria for any assets that
we consider in our three operating regions. Prior to 2018, we
had been less active in M&A in North
America due to the overly competitive nature of the North
American market and consequent lower M&A returns as compared to
Europe. However, market conditions became more favourable
under our criteria in North
America in 2018, and we were able to opportunistically
conclude the Spartan acquisition, a Saskatchewan/Manitoba waterflood purchase, a Powder River
Basin stacked zone land and production acquisition, and the
consolidation of additional Corrib interest. These important
acquisitions enhanced our margins, reduced risk in our operating
and financial profiles, expanded our development project inventory,
increased our operating control, and diversified our asset base
away from Alberta, with its
particularly-challenged product pricing. As a result of our
organic and acquisition activities, we generated a ROCE of 9% in
2018, compared to our five-year average ROCE of 4%.
We achieved a significant operational milestone in Q4 2018 as
our production exceeded 100,000 boe/d for the first time in our
history. Q4 2018 production increased 6% from the prior
quarter to an average of 101,621 boe/d, primarily as a result of
organic activities which were aided by a full quarter of the Powder
River Basin acquisition and a minor contribution from our increased
ownership in Corrib. Looking forward, we are pleased with the
continued expansion of project inventory arising from our
acquisition of Spartan. As we noted at our Investor Day in
November 2018, we have increased our
internally-estimated drilling inventory from the Spartan assets by
approximately 50% to over 1,500 locations. At our Investor
Day, we also related that we have internally-estimated the
potential for approximately 60 mmbbls of net waterflood recovery
potential on the Spartan assets, which is a project class we did
not count in our original evaluation of the Spartan deal. Our
year-end reserve and resources reports(6) recognizes
11.8 mmboe of 2P reserves and 30.0 mmboe of best-estimate
contingent resources, respectively, for the new waterflood projects
that came with Spartan.
Our international diversification provided a significant
strategic advantage to Vermilion in Q4 2018. Oil prices
weakened during Q4 2018, especially Canadian benchmarks, as
differentials for both heavy and light oil widened substantially
due to a combination of factors which included above average
refinery turnaround activity in PADD 2 and resulting high storage
levels in western Canada. While Vermilion's Canadian oil
production was affected by these wider differentials, it was
impacted to a lesser degree than Alberta light and heavy oil, as our
Alberta condensate and
Saskatchewan light oil displayed
relative pricing advantages over the Alberta black oil products. This is most
evident when comparing the Saskatchewan LSB index price versus the
Edmonton Sweet (MSW) index price. During Q4 2018, LSB traded
at an US$11.52/bbl premium over MSW,
compared to a US$0.22/bbl discount in
Q4 2017. Approximately 41% of our total 2019 oil production
is indexed to LSB while only 8% is indexed to MSW. In
additional contrast, Brent oil traded at nearly a US$9/bbl premium over WTI and European natural
gas traded at an approximate $9.40/mcf premium over AECO during Q4 2018.
Approximately 36% of our total 2019 oil production is price
referenced to Brent while roughly 45% of our total 2019 natural gas
production is price referenced to European gas benchmarks.
Despite the volatile commodity prices, we delivered strong
financial results in Q4 2018 with FFO of $222 million ($1.46/basic share(1)) and net earnings
of $323 million ($2.12/basic share). Realized hedging
losses were $28 million in Q4
2018. We estimate that cash dividends will constitute
approximately $400 million in
2019. Our capital budget of $530
million for 2019 is designed to deliver a production range
of 101,000 to 106,000 boe/d, resulting in year-over-year production
per share growth of 8% at the mid-point of guidance. At
current differentials and using the current commodity strip for
Brent, WTI and European natural gas, we estimate that we will be
more than self-funded for our dividends and capital program for
2019, with excess cash generation earmarked for further debt
reduction. As we have noted in the past, we have significant
flexibility in our capital program and could reduce capital
spending if commodity prices weaken substantially. In that
event, we would reduce our growth capital first in order to protect
the balance sheet and the dividend. We believe this level of
organic growth combined with a dividend yield over 8% represents an
attractive option for investors.
Q4 2018 Operations Review
Europe
In France, Q4 2018 production
averaged 11,454 boe/d, which was up slightly from the prior
quarter. Production from our 2018 three (3.0 net) well
drilling program in the Champotran field continued to outperform
expectations, contributing 725 boe/d of production in the fourth
quarter.
In the Netherlands, Q4 2018
production averaged 8,749 boe/d, an increase of 17% from the prior
quarter. The increase is primarily due to the benefit of a
full quarter contribution from the Eesveen-02 well (60% working
interest), which we brought on production late in the third quarter
at a restricted rate of 10 mmcf/d net.
In Ireland, production from the
Corrib Project averaged 52 mmcf/d (8,672 boe/d) in Q4 2018, an
increase of 1% from the prior quarter. On November 30, we assumed operatorship of the
Corrib Project and completed the transfer of SEPIL along with an
incremental 1.5% working interest in the Corrib Project to
Vermilion from Nephin Energy Holdings Limited, a wholly owned
subsidiary of CPPIB. Cash consideration at closing was
$9 million, which was more than
offset by the assumption of $15
million in positive net working capital as a result of the
acquisition. Integration of the staff, processes and systems
have been completed, and we welcome the addition of former-Shell
employees to Vermilion. Most importantly, Vermilion now has
operating control of the Corrib Project, bringing the proportion of
our production that we operate to approximately 90% on a worldwide
basis.
In Germany, production in Q4
2018 averaged 3,736 boe/d, an increase of 7% from the prior
quarter, primarily due to the restoration of gas processing at a
non-operated gas processing facility during the third
quarter. During the fourth quarter, we completed site
construction for the Burgmoor Z5 well (46% working interest) and
have secured all drilling permits necessary to proceed.
Drilling is expected to commence by the end of Q1 2019.
In Central and Eastern Europe
("CEE"), production averaged 477 boe/d in Q4 2018, an increase of
145% over the prior quarter due to production from the well drilled
earlier in 2018 on the South Battonya concession in Hungary.
In Croatia, we acquired an
additional 150 linear kilometres of 2D seismic data in our DR-04
license to expand on the first phase of 2D seismic data we acquired
in Q2 2018. We continued to progress the permitting
activities associated with our 10.0 (7.0 net) well program for 2019
in the CEE business unit, and have received all the permits for our
second well in Hungary. In Slovakia, we were granted the Topolcany
license which is adjacent to our existing Trnava license. The
Topolcany license is owned 50/50 with our partner in Slovakia (NAFTA) and adds 301,000 acres
(150,500 net) to our portfolio.
North America
In Canada, production averaged
a record 60,814 boe/d in Q4 2018, representing an increase of 6%
from the previous quarter. The increase was primarily due to
strong operating performance and new well completions in both
Saskatchewan and Alberta.
The strong production results were partially restrained by a
system-wide power outage in Saskatchewan in December, which reduced
production volumes by approximately 500 boe/d for the
quarter. We drilled or participated in 72 (44.1 net) wells
and brought on production 86 (56.6 net) wells in the fourth
quarter. We executed a five rig program in Saskatchewan, drilling or participating in 61
(34.8 net) wells across our combined Spartan and legacy land
bases. In Alberta, we drilled nine (7.3 net) Mannville wells and two (2.0 net) long-reach
Cardium wells.
In the United States, Q4 2018
production averaged 3,545 boe/d, an increase of 19% from the prior
quarter, due to a full quarter of production associated with the
Powder River Basin acquisition completed in Q3. We drilled
and completed our first (1.0 net) well on the newly acquired
Hilight assets late in the fourth quarter. Production from
this well commenced in mid-December. We elected to use a rod
pump artificial lift system on this well, which offers lower pump
displacement than previously-utilized electrical submersible pumps
on new wells at Hilight, but reduces sand flowback and pump failure
frequency. As a result, the current rate is 290 boe/d (86%
oil) and is increasing as the well cleans up.
Australia
In Australia, production
averaged 4,174 bbl/d in Q4 2018, down 11% from the previous quarter
primarily due to a planned shutdown for maintenance and other
downtime which was required to allow drilling of two new
wells. We began drilling the two wells in early November 2018 and completed the wells in late
January 2019. These were the most technically challenging
wells ever executed at Vermilion. Both wells were drilled at
vertical depths of approximately 650 meters, but with measured
depths of 4,960 meters and 3,697 meters for the B15 and B16 wells
respectively, making these some of the most extreme extended reach
wells at shallow depth in the world. The B15 well also
featured an approximately 180 degree turn to allow drainage of oil
trapped against the updip bounding fault for the Wandoo
field. We achieved our reservoir and mechanical objectives on
both wells, and the wells were successfully tested in February
2019. The B15 well tested at an oil rate of 8,800 bbl/d over
a 48-hour period and the B16 well tested at an oil rate of 7,600
bbl/d over a 36-hour period(2). We plan to
intermittently produce the new wells at restricted rates to
maximize long-term value. The total cost of the program was
$75 million, which is approximately
$10 million over budget due to
slower-than-expected drilling in the vertical sections of the
wells, lost circulation in part of the B15 horizontal section along
the bounding fault, and a cyclone which required down-manning of
the drilling rig for approximately a week.
Commodity Hedging
Vermilion hedges to manage commodity price exposures and
increase the stability of cash flows, providing additional
certainty with regard to the execution of our dividend and capital
programs. In aggregate, we currently have 34% of our expected
net-of-royalty production hedged for Q1 2019. Over half of
the Q1 2019 corporate hedge position consists of two-way collars
and three-way structures, which allow participation in price
increases, up to contract ceilings.
We have currently hedged 67% of anticipated European natural gas
volumes for Q1 2019. In view of the compelling longer-term
forward market for European natural gas, we have also hedged 66%
and 38% of our anticipated full-year 2019 and 2020 volumes at
prices which will provide for strong project economics and free
cash flows. As of February 26,
2019, 29% of our Q1 2019, and 21% of our full year 2019 oil
production is hedged. We will continue to add to our hedge
positions in all products as suitable opportunities arise.
For Q1 2019, 30% of our North American natural gas production is
priced away from AECO, by virtue of diversification hedges to sell
at the SoCal Border, Chicago and
Henry Hub for a portion of our Alberta gas production, and because 14% of our
production comes from Saskatchewan
and Wyoming.
Environmental, Social and Governance ("ESG")
Vermilion was named to the CDP Climate Leadership Level (A-) for
the second consecutive year in 2018. We were the only
Canadian oil and gas company and one of only two North American oil
and gas companies to receive this designation, ranking Vermilion in
the top 5% of oil and gas companies globally. We are proud of
this achievement and believe this ranking is a reflection of our
responsible operating practices and positive track record of
reducing emissions on our oil and gas assets. We will
continue to seek new and innovative ways to improve our overall
operating performance while reducing the emission intensity of our
assets.
In February 2019, we were a
finalist for the Finance and Sustainability Initiative's ("FSI")
award for Best Sustainability Report in the Non-Renewable Resources
- Oil and Gas category for our 2017 Sustainability Report.
Last year, we received this award for our 2016 Sustainability
Report. Based in Montreal,
the FSI is a non-profit organization dedicated to promoting
sustainable finance and, more specifically, responsible investment
to financial institutions, companies, and universities.
Sustainability reports were graded on a number of criteria,
including transparency and balance, reliability and completeness,
and the use of ESG materiality. We firmly believe in the
importance of measuring and understanding our current environmental
impact. Furthermore, we believe the integration of
sustainability principles into our business strategy increases
shareholder returns and reduces long-term risks to our business
model. Our recently published 2018 Sustainability Report is
available now on our corporate website at
http://sustainability.vermilionenergy.com.
Vermilion ranked second within the oil and gas sector, and among
the top quartile of companies in the S&P/TSX Composite Index in
the annual Globe and Mail Board Games evaluation for 2018.
The evaluation uses a rigorous set of governance criteria that goes
beyond minimum mandatory rules imposed by regulators and validates
our commitment to, and execution of, best governance practices.
2018 Reserves and Resources
In 2018 we significantly increased our reserves and resources
through a combination of development and acquisition
activities. Based on the 2018 GLJ Reserves Report, our 2P
reserves increased 63% from year-end 2017 to 488.1(3)
mmboe, while our 1P reserves increased 69% from year-end 2017 to
298.2(3) mmboe in 2018. PDP reserves increased 55%
from year-end 2017 to 192.1(3) mmboe. Our PDP
reserves represent 64% of our 1P reserves.
The following table provides a summary of company interest
reserves by reserve category and country on an oil equivalent
basis. Please refer to Vermilion's 2018 Annual Information
Form for detailed by product type information.
|
|
|
|
|
|
|
BOE
(Mboe)
|
Proved
Developed
Producing
|
Proved
Developed
Non-Producing
|
Proved
Undeveloped
|
Proved
|
Probable
|
Proved Plus
Probable
|
Australia
|
8,048
|
1,620
|
—
|
9,668
|
4,812
|
14,480
|
Canada
|
103,992
|
9,496
|
68,451
|
181,939
|
102,897
|
284,836
|
France
|
37,596
|
441
|
5,429
|
43,466
|
20,452
|
63,918
|
Germany
|
9,879
|
2,043
|
1,069
|
12,991
|
12,744
|
25,735
|
Hungary
|
131
|
—
|
—
|
131
|
59
|
191
|
Ireland
|
13,093
|
—
|
—
|
13,093
|
7,482
|
20,575
|
Netherlands
|
7,629
|
3,469
|
705
|
11,802
|
10,395
|
22,196
|
United
States
|
11,705
|
—
|
13,442
|
25,147
|
31,068
|
56,214
|
Vermilion
|
192,073
|
17,069
|
89,096
|
298,237
|
189,909
|
488,145
|
Through development activities, we replaced 187% of 2P reserves,
157% of 1P reserves and 130% of PDP reserves, respectively.
Including acquisitions, we replaced 695% of 2P reserves, 481% of 1P
reserves and 314% of PDP reserves, respectively.
Our Operating Recycle Ratio(5) (including FDC) at the
2P level increased to 4.1x in 2018, compared to 2.8x in 2017, as a
result of higher operating netbacks and a significant decrease to
our F&D costs (including FDC). Organic F&D costs
(including FDC) decreased 26% in 2018 to $7.79/boe, compared to $10.57/boe in 2017. These metrics remain
strong relative to historical industry averages, and reflect the
significant improvement in our capital efficiencies over the last
several years.
The following table summarizes the finding and development costs
and associated operating recycle ratios by reserve category for the
year ended December 31, 2018:
|
|
|
|
2018
|
3-Year
Average
|
|
PDP
|
1P
|
2P
|
PDP
|
1P
|
2P
|
Finding and
Development Costs, including FDC (F&D)(3)
($/boe)
|
$15.65
|
$13.49
|
$7.79
|
$11.94
|
$10.96
|
$7.85
|
Finding, Development
and Acquisition Costs, including FDC (FD&A)(3)
($/boe)
|
$23.92
|
$19.95
|
$14.99
|
$18.71
|
$16.87
|
$13.16
|
|
|
|
|
|
|
|
F&D Operating
Recycle Ratio(4) *
|
2.0
|
2.3
|
4.1
|
2.5
|
2.7
|
3.8
|
FD&A Operating
Recycle Ratio(4) *
|
1.3
|
1.6
|
2.1
|
1.6
|
1.8
|
2.2
|
In addition to increasing our reserve base, we pursued various
initiatives to expand our resource base to support our longer-term
growth profile. According to the 2018 GLJ Resources Report,
risked low, best, and high estimates for our contingent resources
in the Development Pending category we evaluated as
156(6) mmboe, 240(6) mmboe, and
334(6) mmboe, respectively. The 2018 GLJ Resources
Report also indicates risked low, best, and high estimates for
contingent resources in the Development Unclarified category of
11(6) mmboe, 37(6) mmboe, and
53(6) mmboe, respectively. Over 86% of our risked
contingent resources reside in the Development Pending
category. Prospective resources were assessed at risked low,
best and high estimates of 55(6) mmboe,
161(6) mmboe, and 284(6) mmboe,
respectively. Our contingent and prospective resource bases
remain a source of reserve additions, with 17 mmboe of contingent
resources converted to 2P reserves during 2018.(6)
The following table provides a reconciliation of changes in
reserves by reserve category and country. Please refer to
Vermilion's 2018 Annual Information Form for detailed by product
type information.
|
|
|
|
|
|
|
|
|
|
1P
(Mboe)
|
Australia
|
Canada
|
France
|
Germany
|
Hungary
|
Ireland
|
Netherlands
|
United
States
|
Vermilion
|
December 31,
2017
|
10,915
|
81,388
|
42,094
|
12,640
|
—
|
13,634
|
10,347
|
5,613
|
176,631
|
Discoveries
|
—
|
—
|
—
|
—
|
193
|
—
|
—
|
—
|
193
|
Extensions &
Improved Recovery
|
—
|
31,289
|
2,249
|
673
|
—
|
—
|
256
|
1,359
|
35,826
|
Technical
Revisions
|
393
|
6,977
|
3,244
|
979
|
—
|
1,575
|
206
|
298
|
13,671
|
Acquisitions
|
—
|
81,328
|
—
|
—
|
—
|
1,241
|
3,838
|
18,604
|
105,012
|
Dispositions
|
—
|
(134)
|
—
|
—
|
—
|
—
|
—
|
—
|
(134)
|
Economic
Factors
|
—
|
(1,162)
|
40
|
17
|
—
|
—
|
(4)
|
(1)
|
(1,110)
|
Production
|
(1,640)
|
(17,750)
|
(4,160)
|
(1,319)
|
(62)
|
(3,356)
|
(2,839)
|
(727)
|
(31,853)
|
December 31,
2018
|
9,668
|
181,938
|
43,467
|
12,990
|
131
|
13,094
|
11,804
|
25,146
|
298,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2P
(Mboe)
|
Australia
|
Canada
|
France
|
Germany
|
Hungary
|
Ireland
|
Netherlands
|
United
States
|
Vermilion
|
December 31,
2017
|
15,565
|
139,294
|
64,189
|
24,496
|
—
|
22,199
|
17,863
|
14,969
|
298,575
|
Discoveries
|
—
|
—
|
—
|
—
|
252
|
—
|
—
|
—
|
252
|
Extensions &
Improved Recovery
|
—
|
37,024
|
1,934
|
2,158
|
—
|
—
|
2,201
|
6,265
|
49,581
|
Technical
Revisions
|
555
|
5,573
|
2,713
|
393
|
—
|
(253)
|
16
|
1,880
|
10,875
|
Acquisitions
|
—
|
121,537
|
—
|
—
|
—
|
1,986
|
4,973
|
33,828
|
162,324
|
Dispositions
|
—
|
(227)
|
—
|
—
|
—
|
—
|
—
|
—
|
(227)
|
Economic
Factors
|
—
|
(616)
|
(758)
|
5
|
—
|
—
|
(14)
|
(2)
|
(1,383)
|
Production
|
(1,640)
|
(17,750)
|
(4,160)
|
(1,319)
|
(62)
|
(3,356)
|
(2,839)
|
(727)
|
(31,853)
|
December 31,
2018
|
14,480
|
284,835
|
63,918
|
25,733
|
190
|
20,576
|
22,200
|
56,213
|
488,145
|
Additional information about our 2018 GLJ Reserves Report and
GLJ 2018 Resources Report can be found in our 2018 Annual
Information Form on our website at www.vermilionenergy.com and on
SEDAR at www.sedar.com.
(signed "Anthony Marino")
Anthony Marino
President & Chief Executive Officer
February 27, 2019
(1)
|
Non-GAAP Financial
Measure. Please see the "Non-GAAP Financial Measures" section
of Management's Discussion and Analysis.
|
|
|
(2)
|
B15ST1 well tested
oil at an average rate of 8,769 bbls/d and zero barrels of water
per day ("bwpd") over a 48-hour period at a flowing wellhead
pressure of 900 kpa (130 psi) on a 100% open choke (130 mm or 5.1
inch diameter) with applied gas-lift of 22,000 m3/d (775
mcf/d). The well was estimated to be flowing with a 30%
drawdown of reservoir pressure.
|
|
|
|
B16ST2 well tested
oil at an average rate of 7,600 bbls/d and 770 bwpd over a 36-hour
period at a flowing wellhead pressure of 900 kpa (130 psi) on a
100% open choke (130 mm or 5.1 inch diameter) with applied gas-lift
of 45,000 m3/d (1,590 mcf/d). The well was estimated to be
flowing with a 15% drawdown of reservoir pressure.
|
|
|
(3)
|
Estimated proved and
proved plus probable reserves attributable to the assets as
evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") in a report
dated February 7, 2019 with an effective date of December 31, 2018
(the "2018 GLJ Reserves Report").
|
|
|
(4)
|
F&D (finding and
development) and FD&A (finding, development and acquisition)
costs are used as a measure of capital efficiency and are
calculated by dividing the applicable capital expenditures for the
period, including the change in undiscounted future development
capital ("FDC"), by the change in the reserves, incorporating
revisions and production, for the same period.
|
|
|
(5)
|
Operating Recycle
Ratio is a measure of capital efficiency calculated by dividing the
Operating Netback by the cost of adding reserves (F&D
cost). Operating Netback is calculated as sales less
royalties, operating expense, transportation costs, PRRT and
realized hedging gains and losses presented on a per unit
basis.
|
|
|
(6)
|
Vermilion retained
GLJ to conduct an independent resource evaluation dated February 7,
2019 to assess contingent and prospective resources across all of
the Company's key operating regions with an effective date of
December 31, 2018 (the "GLJ 2018 Resources Report"). The
aggregate associated chance of development for each of the low,
best and high estimate for contingent resources in the Development
Pending category are 82%, 81% and 81%, respectively. The
aggregate associated chance of commerciality for each of the low,
best and high estimate for prospective resources in the Prospect
category are 24%, 23% and 24%, respectively. There is
uncertainty that it will be commercially viable to produce any
portion of the resources. Project maturity subclass
development pending is defined as contingent resources where
resolution of the final conditions for development is being
actively pursued (high chance of development. Project
maturity subclass development unclarified is defined as contingent
resources when the evaluation is incomplete and there is ongoing
activity to resolve any risks or uncertainties. Prospective
resources are defined as those quantities of petroleum estimated,
as of a given date, to be potentially recoverable from unknown
accumulations by application of future development projects.
There is no certainty that it will be commercially viable to
produce any portion of the contingent resources or that Vermilion
will produce any portion of the volumes currently classified as
contingent resources. There is no certainty that any portion
of the prospective resources will be discovered. If
discovered, there is no certainty that it will be commercially
viable to produce any portion of the prospective resources or that
Vermilion will produce any portion of the volumes currently
classified as prospective resources. Please refer to
Vermilion's 2018 Annual Information Form for further information on
Vermilion's contingent resources and prospectus
resources.
|
Guidance
On October 30, 2017, we released
our 2018 capital expenditure guidance of $315 million and associated production guidance
of between 74,500 to 76,500 boe/d. On January 15, 2018, we increased our capital
expenditure guidance to $325 million
and production guidance to between 75,000 to 77,500 boe/d to
reflect the post-closing impact of the acquisition of a private
southeast Saskatchewan and
southwest Manitoba light oil
producer. On April 16, 2018, we
increased our capital expenditure guidance to $430 million and production guidance to between
86,000 to 90,000 boe/d to reflect the post-closing impact of the
acquisition of Spartan Energy Corp. On July 30, 2018, we increased our capital
expenditure guidance to $500 million
to reflect the acceleration of our Australia drilling campaign into Q4 2018, and
to a lesser extent to account for the impact of foreign exchange
fluctuations on our Canadian dollar capital levels. On
October 25, 2018, we increased our
capital expenditure guidance to $510
million to reflect additional capital activity associated
with the assets acquired in the Powder River Basin in August of
2018. Actual 2018 capital spending of $518 million was within 2% of our guidance and
2018 average production of 87,270 boe/d was within 1% of the
mid-point of our guidance range.
On October 25, 2018, we released
our 2019 capital budget and related guidance. The 2019 total
budget and production guidance remain unchanged, although we have
deferred some activity to later in the year and reallocated capital
between business units, the breakdown of which can be found in our
corporate presentation located on our website.
The following table summarizes our guidance:
|
|
|
|
|
|
|
Date
|
|
Capital
Expenditures ($MM)
|
|
Production
(boe/d)
|
2018
Guidance
|
|
|
|
|
|
2018
Guidance
|
October 30,
2017
|
|
315
|
|
74,500 to
76,500
|
2018
Guidance
|
January 15,
2018
|
|
325
|
|
75,000 to
77,500
|
2018
Guidance
|
April 16,
2018
|
|
430
|
|
86,000 to
90,000
|
2018
Guidance
|
July 30,
2018
|
|
500
|
|
86,000 to
90,000
|
2018
Guidance
|
October 25,
2018
|
|
510
|
|
86,000 to
90,000
|
2018 Actual
Results
|
|
|
518
|
|
87,270
|
2019
Guidance
|
|
|
|
|
|
2019
Guidance
|
October 25,
2018
|
|
530
|
|
101,000 to
106,000
|
Conference Call and Webcast Details
Vermilion will discuss these results in a conference call and
webcast presentation on Thursday, February
28, 2019 at 9:00 AM MST
(11:00 AM EST). To participate, call
1-888-231-8191 (Canada and US Toll
Free) or 1-647-427-7450 (International and Toronto Area). A recording of the
conference call will be available for replay by calling
1-855-859-2056 and using the conference ID 7955826 from
February 28, 2019 at 12:00 PM MST to March 14,
2019 at 9:59 PM MST.
You may also access the webcast at
https://event.on24.com/wcc/r/1924756/BAC3FC6A211842CA79D33D2B88BCFBA6.
The webcast link, along with conference call slides, can be found
on Vermilion's website at
http://www.vermilionenergy.com/invest-with-us/events--presentations.cfm under
Upcoming Events prior to the conference call.
About Vermilion
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 emphasizes
organic production growth augmented with value-adding acquisitions,
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 oil drilling and workover programs in France and Australia. Vermilion holds a 20% working
interest in the Corrib gas field in Ireland. Vermilion pays a monthly
dividend of Canadian $0.23 per share,
which provides a current yield of approximately 8.0%.
Vermilion's priorities are health and safety, the environment,
and profitability, in that order. Nothing is more important
to us than the safety of the public and those who work with us, and
the protection of our natural surroundings. We have been
recognized as a top decile performer amongst Canadian publicly
listed companies in governance practices, as a Climate Leadership
level (A-) performer by the CDP, and a Best Workplace in the Great
Place to Work® Institute's annual rankings in Canada, the
Netherlands and Germany. In addition, Vermilion
emphasizes strategic community investment in each of our operating
areas.
Employees and directors hold approximately 5% of our fully
diluted shares, are committed to consistently delivering superior
rewards for all stakeholders, and have delivered over 20 years of
market outperformance. Vermilion trades on the Toronto Stock
Exchange and the New York Stock Exchange under the symbol VET.
Disclaimer
Certain statements included or incorporated by reference in this
document may constitute forward looking statements or financial
outlooks under applicable securities legislation. Such
forward looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an
outlook. Forward looking statements or information in this
document may include, but are not limited to: capital expenditures
and Vermilion's ability to fund such expenditures;
Vermilion's additional debt capacity providing it with additional
working capital; the flexibility of Vermilion's capital program and
operations; business strategies and objectives; operational and
financial performance; estimated volumes of reserves and resources;
petroleum and natural gas sales; future production levels and the
timing thereof, including Vermilion's 2019 guidance, and rates of
average annual production growth; the effect of changes in crude
oil and natural gas prices, changes in exchange rates and
significant declines in production or sales volumes due to
unforeseen circumstances; the effect of possible changes in
critical accounting estimates; statements regarding the growth and
size of Vermilion's future project inventory, and the wells
expected to be drilled in 2019; exploration and development plans
and the timing thereof; Vermilion's ability to reduce its debt,
including its ability to redeem senior unsecured notes prior to
maturity; statements regarding Vermilion's hedging program, its
plans to add to its hedging positions, and the anticipated impact
of Vermilion's hedging program on project economics and free cash
flows; the potential financial impact of climate-related risks;
acquisition and disposition plans and the timing thereof; operating
and other expenses, including the payment and amount of future
dividends; royalty and income tax rates and Vermilion's
expectations regarding future taxes and taxability; and the timing
of regulatory proceedings and approvals.
Such forward looking statements or information are based on a
number of assumptions, all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things: the ability of Vermilion to obtain equipment, services and
supplies in a timely manner to carry out its activities in
Canada and internationally; the
ability of Vermilion to market crude oil, natural gas liquids, and
natural gas successfully to current and new customers; the timing
and costs of pipeline and storage facility construction and
expansion and the ability to secure adequate product
transportation; the timely receipt of required regulatory
approvals; the ability of Vermilion to obtain financing on
acceptable terms; foreign currency exchange rates and interest
rates; future crude oil, natural gas liquids, and natural gas
prices; and management's expectations relating to the timing and
results of exploration and development activities.
Although Vermilion believes that the expectations reflected in
such forward looking statements or information are reasonable,
undue reliance should not be placed on forward looking statements
because Vermilion can give no assurance that such expectations will
prove to be correct. Financial outlooks are provided for the
purpose of understanding Vermilion's financial position and
business objectives, and the information may not be appropriate for
other purposes. Forward looking statements or information are
based on current expectations, estimates, and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by
Vermilion and described in the forward looking statements or
information. These risks and uncertainties include, but are
not limited to: the ability of management to execute its business
plan; the risks of the oil and gas industry, both domestically and
internationally, such as operational risks in exploring for,
developing and producing crude oil, natural gas liquids, and
natural gas; risks and uncertainties involving geology of crude
oil, natural gas liquids, and natural gas deposits; risks inherent
in Vermilion's marketing operations, including credit risk; the
uncertainty of reserves estimates and reserves life and estimates
of resources and associated expenditures; the uncertainty of
estimates and projections relating to production and associated
expenditures; potential delays or changes in plans with respect to
exploration or development projects; Vermilion's ability to enter
into or renew leases on acceptable terms; fluctuations in crude
oil, natural gas liquids, and natural gas prices, foreign currency
exchange rates and interest rates; health, safety, and
environmental risks; uncertainties as to the availability and cost
of financing; the ability of Vermilion to add production and
reserves through exploration and development activities; the
possibility that government policies or laws may change or
governmental approvals may be delayed or withheld; uncertainty in
amounts and timing of royalty payments; risks associated with
existing and potential future law suits and regulatory actions
against Vermilion; and other risks and uncertainties described
elsewhere in this document or in Vermilion's other filings with
Canadian securities regulatory authorities.
The forward looking statements or information contained in this
document are made as of the date hereof and Vermilion undertakes no
obligation to update publicly or revise any forward looking
statements or information, whether as a result of new information,
future events, or otherwise, unless required by applicable
securities laws.
All crude oil and natural gas reserve and resource information
contained in this document has been prepared and presented in
accordance with National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities and the Canadian
Oil and Gas Evaluation Handbook. Reserves estimates have been
made assuming that development of each property in respect of which
the estimate is made will occur, without regard to the likely
availability of funding required for such development. The actual
crude oil and natural gas reserves and future production will be
greater than or less than the estimates provided in this
document.
Natural gas volumes have been converted on the basis of six
thousand cubic feet of natural gas to one barrel of oil
equivalent. Barrels of oil equivalent (boe) may be
misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet to one barrel of oil is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Financial data contained within this document are reported in
Canadian dollars, unless otherwise stated.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vermilion-energy-inc-announces-results-for-the-year-ended-december-31-2018-and-2018-reserves-and-resources-information-300803819.html
SOURCE Vermilion Energy Inc.