June 09, 2025 [Oil Price]- Calgary-based Vermilion Energy Inc. will sell its assets in the United States for $88 million (C$120 million), which will complete its exit from the U.S. and allow it to reduce debt and focus on natural gas assets in Canada and Europe.

The assets in the sale consist of about 5,500 barrels of oil equivalent per day boe/d of production, of which 81% is oil and liquids, as well as 10 million barrels of oil equivalent of proved developed producing reserves, Vermilion Energy said on Thursday.

Vermilion Energy expects to close the transaction in the third quarter. The deal, combined with the sale of the East Finn assets in 2023, completes the company’s exit from the United States, allowing it to focus on its core gas-weighted assets in Canada and Europe.

Earlier this year, Vermilion Energy bought Westbrick Energy Ltd, with which it expanded its natural gas footprint in Alberta’s Deep Basin.

The Westbrick acquisition included production of 50,000 boe/d, of which 75% gas and 25% liquids, and approximately 1.1 million (770,000 net) acres of land in the southeast portion of the Deep Basin trend in Alberta. With the transaction, Vermilion Energy also gains control over four operated gas plants with a total capacity of 102 mmcf/d. The Westbrick assets complement Vermilion’s legacy Deep Basin assets, providing significant operational and corporate synergies, it said.

Following the acquisition of Westbrick, Vermilion Energy revised up on Thursday its 2025 production guidance to between 117,000 boe/d and 122,000 boe/d, up from 84,000 boe/d to 88,000 boe/d. The share of natural gas in this year’s output is expected at 65%, compared to 56% before the acquisition of Westbrick.

On a go-forward basis, Vermilion Energy estimates that more than 90% of production will come from its global gas portfolio and over 80% of capital is expected to be allocated to these assets.

“Vermilion will continue to evaluate capital investment levels during this period of increased volatility and will adjust capital if necessary to prioritize free cash flow over production growth during 2025 and 2026,” the Canadian firm said today.