Vermilion Energy exits U.S. with nearly US$88 million asset sale

A storage tank is pictured on the site of Canadian group Vermilion Energy in Parentis-en-Born, France, October 13, 2017.

Canada’s Vermilion Energy said on Thursday it will sell its United States assets for $120 million (US$87.88 million), completing its exit from the U.S. market.

The company said it will use the proceeds to repay debt, strengthen balance sheet and added that it expects to exit 2025 with a net debt of $1.3 billion.

The transaction, expected to close in the third quarter, will allow Vermilion Energy to focus on core gas-weighted assets in Canada and Europe.

The company also raised its current year production forecast to between 117,000 and 122,000 barrels of oil equivalent per day (boepd) from 84,000 to 88,000 boepd earlier.

Earlier this year, the company acquired privately held oil and gas firm Westbrick Energy for $1.075 billion, strengthening its position in the Deep Basin of Alberta.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Mrigank Dhaniwala)