CALGARY, July 31, 2014 /CNW/ – Vermilion Energy Inc. (“Vermilion”, “We”, “Our”, “Us” or the “Company”) (TSX, NYSE: VET) is pleased to report operating and unaudited financial results for the three and six months ended June 30, 2014.
- Achieved average production of 52,089 boe/d during the second quarter of 2014, an increase of 12% as compared to 46,677 boe/d in the prior quarter and an increase of 22% compared to 42,813 boe/d in the second quarter of 2013. Increased production was largely attributable to a 27% increase in Canadian production versus the prior quarter, led by robust performance in both our Mannville condensate-rich natural gas and Cardium light-oil development programs, which achieved production increases of 50% and 17% respectively. Canadian volumes also increased due to approximately two months of production contribution from our S.E. Saskatchewan acquisition, which we closed at the end of April 2014. European volumes benefitted from a full quarter of contribution from our German acquisition, which we closed in February 2014.
- Based on the continued strength of our operations during the second quarter of 2014, we are increasing our full-year 2014 production guidance from the current range of 48,000-49,000 boe/d to 48,500-49,500 boe/d.
- Generated fund flows from operations(1) in the second quarter of 2014 of $216.1 million ($2.05/basic share), as compared to $205.4 million ($2.01/basic share) in the prior quarter and $174.6 million ($1.73/basic share) in the second quarter of 2013. The increase was primarily attributable to improved oil pricing and significantly higher volumes in Canada.
- On April 29, 2014, we announced completion of our acquisition of Elkhorn Resources Inc., a private S.E. Saskatchewan producer, for total consideration of approximately $427 million. The assets consist of high netback, light oil producing assets in the Northgate region of southeast Saskatchewan and include approximately 57,000 net acres of land (approximately 80% undeveloped), seven oil batteries, and preferential access to 50% or greater capacity at a solution gas facility that is currently under construction.
- On May 22, 2014, we announced the completion of tunnel boring operations beneath Sruwaddacon Bay at our Corrib project in Ireland. The tunnel boring machine has been demobilized from the tunnel, and the remaining tunnel outfitting, gas plant preparation and offshore well work activities are progressing. We anticipate first gas from Corrib in approximately mid-2015, with peak production estimated at approximately 58 mmcf/d (approximately 9,700 boe/d) net to Vermilion.
- We are celebrating our 20th Anniversary as a publicly traded company in 2014. This has been a rewarding period of growth and achievement for Vermilion, and we are proud of our progress to date. Most importantly, we are honored to have provided our shareholders with a compound average total return including dividends, as of June 30, 2014, of 36.8% per annum since our inception. Looking forward, with the consistent strength of our operations, our extensive opportunity base, and anticipated growth of our fund flows from operations in the current commodity environment, we will strive to provide continued strong financial performance, and a reliable and growing dividend stream to investors.
|(1)||Additional GAAP Financial Measure. Please see the “Additional and Non-GAAP Financial Measures” section of Management’s Discussion and Analysis.|
Vermilion Energy Inc. Second Quarter 2014 Conference Call and Audio Webcast Details
Vermilion will discuss these results in a conference call to be held on Thursday, July 31, 2014 at 9:00 AM MST (11:00 AM EST). To participate, you may call 1-888-231-8191 (Canada and US Toll Free) or 1-647-427-7450 (International and Toronto Area). The conference call will also be available on replay by calling 1-855-859-2056 using conference ID number 65722904. The replay will be available until midnight eastern time on August 7, 2014.
You may also listen to the audio webcast by clicking http://event.on24.com/r.htm?e=813553&s=1&k=D1BE33AF46B4AC5B296C96983A231587 or visit Vermilion’s website at www.vermilionenergy.com/ir/eventspresentations.cfm.