Ver­mil­ion En­ergy makes deal worth $1.4B

Lethbridge Herald - - BUSINESS & AG NEWS - THE CANA­DIAN PRESS — CAL­GARY

In­ter­na­tional oil and gas pro­ducer Ver­mil­ion En­ergy Inc. is tak­ing ad­van­tage of low val­u­a­tions for “unloved” Cana­dian en­ergy as­sets in a $1.4-bil­lion deal to buy a Saskatchewan-fo­cused ri­val, its CEO said Mon­day.

The com­pany will is­sue $1.23 bil­lion worth of Ver­mil­ion shares and as­sume about $175 mil­lion in debt to buy fel­low Cal­gary-based pro­ducer Spar­tan En­ergy Corp. in a trans­ac­tion ex­pected to close in June.

CEO Tony Marino said Ver­mil­ion has been watch­ing the Saskatchewan en­ergy sec­tor for about five years and first en­tered the field in 2014 be­cause it of its light oil-pro­duc­ing wells and good pipe­line ac­cess to mar­kets in the United States.

“The Cana­dian sec­tor con­tin­ued to be more and more unloved over time, es­pe­cially in the past year in the cap­i­tal mar­kets,” Marino said.

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