In 2017 and 2018, we have strengthened our core regions, through acquisitions that align with our sustainable growth-and-income model by targeting low risk assets with high netbacks, strong free cash flow generation, low base decline rates and strong capital efficiencies on future development. This adheres to our long-term strategy of balanced and diversified growth: 102-10
- In May 2018, Vermilion completed a $1.4 billion acquisition of Spartan Energy Corp., a publicly traded southeast Saskatchewan oil producer. The transaction significantly increases our presence in the desirable operating jurisdiction of southeast Saskatchewan, while increasing our exposure to high netback light oil in a highly advantaged product marketing setting.
- In January 2018, we acquired a private southeast Saskatchewan producer, with assets comprised of high netback, low base decline, light oil producing fields in the Sinclair and Fertile areas, straddling the Saskatchewan/Manitoba border.
- In December 2017, we were awarded a license for the Békéssámson concession in Hungary for a 4-year term, which more than doubles the size of our total land position in the country. Subsequent to year-end, we drilled and tested our first exploratory well in the South Battonya concession, marking the drilling of our first well in the Central and Eastern Europe Business Unit.
- In July 2017, Vermilion and the Canada Pension Plan Investment Board (CPPIB) announced a strategic partnership in Corrib, whereby CPPIB will acquire Shell Exploration Company B.V.’s 45% interest in Corrib for total cash consideration of €830 million, subject to customary closing adjustments and future contingent value payments based on performance and realized pricing. The acquisition has an effective date of January 1, 2017 . At closing, Vermilion expects to assume operatorship of Corrib, and CPPIB plans to transfer the operating entity and a 1.5% working interest to Vermilion for €19.4 million, before closing adjustments. We continue to work closely with CPPIB and Shell on the transition of ownership and operations of the Corrib asset. Transition has progressed well with all technical aspects being ready, and final approvals from the necessary authorities expected to be received by the end of 2018.