CALGARY, April 28, 2020 /CNW/ - Vermilion Energy Inc.
("Vermilion", "We", "Our", "Us" or the "Company") (TSX, NYSE: VET)
is pleased to report operating and condensed financial results for
the three months ended March 31, 2020.
The unaudited interim financial statements and management
discussion and analysis for the three months
ended March 31, 2020 will be available on the System for
Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml, and on
Vermilion's website at www.vermilionenergy.com.
Highlights
- Fund flows from operations ("FFO") in Q1 2020 was $170 million ($1.09/basic share(1)), a decrease of
21% from the prior quarter. The decrease is primarily due to
significantly lower commodity prices that began to materialize
midway through the quarter in response to the COVID-19 pandemic and
oil price war that ensued in early March. Lower commodity price
impacts were partially offset by hedging gains.
- Q1 2020 production averaged 97,154 boe/d, representing a 1%
decrease from the prior quarter, with minor negative effects from
the pandemic. Tie-in activity from the Q1 capital program will
contribute meaningfully in the second quarter of 2020.
- In Canada, production averaged
59,537 boe/d in Q1 2020, an increase of 2% from the prior quarter,
primarily due to production contributions from new well start-ups
in the quarter. We observed strong performance from wells drilled
in the quarter, with multiple wells in both the Mannville and Southeast Saskatchewan programs performing
ahead of expectations.
- In the Netherlands, production
averaged 8,143 boe/d, a slight increase from the prior quarter. We
continue to advance the permitting for future planned wells while
awaiting the final production permit for our Weststellingwerf well
(0.5 net) well, which was successfully drilled and flowed at an
initial rate of 14.7 mmcf/d2 in the quarter.
- In response to COVID-19, we have made adjustments to our
operating practices, including social distancing and task redesign,
to provide both for safety and business continuity in our
operations during the pandemic. At present, our only production
impacts stem from limited third-party service interruptions and a
refinery outage in our French operations.
- In Q1 2020, we negotiated and closed an extension to our
$2.1 billion revolving credit
facility to extend the maturity to May 31,
2024. All other terms within the facility remained the
same.
- Vermilion was named to the CDP Climate Leadership Level (A-)
for the third consecutive year in 2019. We were one of only two
Canadian oil and gas companies and one of only four North American
oil and gas companies to receive this designation, ranking
Vermilion in the top 6% of oil and gas companies globally.
- In March, we reduced our monthly dividend by 50% to
$0.115 per share and announced an
$80 to $100
million reduction to our annual capital budget in response
to the COVID-19 pandemic and the resulting negative impact on
near-term oil demand and prices. We expect to achieve the high end
of this capital reduction range, and have identified $35 million in expense reductions to date to
reduce outlays further. In addition, subsequent to the first
quarter, our board of directors suspended the monthly dividend as a
further measure to strengthen the financial position of the company
during this period of weak commodity prices.
(1)
|
Non-GAAP Financial
Measure. Please see the "Non-GAAP Financial Measures" section
of the accompanying Management's Discussion and
Analysis.
|
|
|
(2)
|
The Weststellingwerf
flow rate was 14.7 mmcf/d gross over a 24-hour period at a wellhead
pressure of 1,625 psi. Initial flow rates are not necessarily
indicative of long-term performance or ultimate
recovery.
|
($M except as
indicated)
|
Q1
2020
|
Q4
2019
|
Q1
2019
|
Financial
|
|
|
|
Petroleum and natural
gas sales
|
328,314
|
|
388,802
|
|
481,083
|
|
Fund flows from
operations
|
170,225
|
|
215,592
|
|
253,572
|
|
Fund flows from
operations ($/basic share) (1)
|
1.09
|
|
1.38
|
|
1.66
|
|
Fund flows from
operations ($/diluted share) (1)
|
1.09
|
|
1.38
|
|
1.64
|
|
Net earnings
(loss)
|
(1,318,504)
|
|
1,477
|
|
39,547
|
|
Net earnings (loss)
($/basic share)
|
(8.42)
|
|
0.01
|
|
0.26
|
|
Capital
expenditures
|
233,704
|
|
100,625
|
|
202,053
|
|
Acquisitions
|
11,337
|
|
9,165
|
|
16,027
|
|
Asset retirement
obligations settled
|
3,732
|
|
7,352
|
|
3,597
|
|
Cash dividends
($/share)
|
0.575
|
|
0.690
|
|
0.690
|
|
Dividends
declared
|
90,067
|
|
107,702
|
|
105,549
|
|
% of fund flows from
operations
|
53
|
%
|
50
|
%
|
42
|
%
|
Net dividends
(1)
|
82,422
|
|
97,502
|
|
98,445
|
|
% of fund flows from
operations
|
48
|
%
|
45
|
%
|
39
|
%
|
Payout
(1)
|
319,858
|
|
205,479
|
|
304,095
|
|
% of fund flows from
operations
|
188
|
%
|
95
|
%
|
120
|
%
|
Net debt
|
2,155,623
|
|
1,993,194
|
|
2,000,144
|
|
Net debt to four
quarter trailing fund flows from operations
|
2.61
|
|
2.20
|
|
1.45
|
|
Operational
|
Production
|
|
|
|
Crude oil and
condensate (bbls/d)
|
44,881
|
|
46,261
|
|
49,181
|
|
NGLs
(bbls/d)
|
8,022
|
|
8,160
|
|
7,897
|
|
Natural gas
(mmcf/d)
|
265.51
|
|
260.72
|
|
277.96
|
|
Total
(boe/d)
|
97,154
|
|
97,875
|
|
103,404
|
|
Average realized
prices
|
|
|
|
Crude oil and
condensate ($/bbl)
|
58.66
|
|
71.25
|
|
73.45
|
|
NGLs
($/bbl)
|
8.92
|
|
14.63
|
|
22.49
|
|
Natural gas
($/mcf)
|
2.94
|
|
3.61
|
|
5.10
|
|
Production mix (% of
production)
|
|
|
|
% priced with
reference to WTI
|
39
|
%
|
40
|
%
|
37
|
%
|
% priced with
reference to Dated Brent
|
17
|
%
|
17
|
%
|
18
|
%
|
% priced with
reference to AECO
|
27
|
%
|
26
|
%
|
26
|
%
|
% priced with
reference to TTF and NBP
|
17
|
%
|
17
|
%
|
19
|
%
|
Netbacks
($/boe)
|
|
|
|
Operating netback
(1)
|
22.02
|
|
27.53
|
|
31.50
|
|
Fund flows from
operations netback
|
18.85
|
|
24.40
|
|
26.76
|
|
Operating
expenses
|
13.41
|
|
12.52
|
|
12.92
|
|
General and
administration expenses
|
1.47
|
|
1.88
|
|
1.38
|
|
Average reference
prices
|
|
|
|
WTI (US
$/bbl)
|
46.17
|
|
56.96
|
|
54.90
|
|
Edmonton Sweet index
(US $/bbl)
|
38.59
|
|
51.59
|
|
50.05
|
|
Saskatchewan LSB index
(US $/bbl)
|
38.41
|
|
51.58
|
|
50.84
|
|
Dated Brent (US
$/bbl)
|
50.26
|
|
63.25
|
|
63.20
|
|
AECO
($/mcf)
|
2.03
|
|
2.48
|
|
2.62
|
|
NBP ($/mcf)
|
4.32
|
|
5.38
|
|
8.33
|
|
TTF ($/mcf)
|
4.23
|
|
5.36
|
|
8.14
|
|
Average foreign
currency exchange rates
|
|
|
|
CDN $/US $
|
1.34
|
|
1.32
|
|
1.33
|
|
CDN $/Euro
|
1.48
|
|
1.46
|
|
1.51
|
|
Share information
('000s)
|
Shares outstanding -
basic
|
157,020
|
|
156,290
|
|
153,213
|
|
Shares outstanding -
diluted (1)
|
160,425
|
|
159,912
|
|
156,650
|
|
Weighted average
shares outstanding - basic
|
156,562
|
|
155,950
|
|
152,904
|
|
Weighted average
shares outstanding - diluted (1)
|
156,562
|
|
156,180
|
|
154,550
|
|
(1)
|
The above table
includes non-GAAP financial measures which may not be comparable to
other companies. Please see the "Non-GAAP Financial Measures"
section of the accompanying Management's Discussion and
Analysis.
|
Message to Shareholders
The past two months have been an extremely challenging time for
people the world over as we make changes in our daily lives to
arrest the COVID-19 pandemic. Health and safety is our top
priority at Vermilion, and we have taken the necessary physical
distancing measures and operating adjustments to manage through
this crisis while still delivering essential energy products for
our society. I would like to extend my deepest gratitude to
all of our employees and contractors who have adapted their daily
working practices and schedules to ensure both safety and business
continuity at Vermilion. At present, we have only moderate
impacts on our operations due to COVID-19, with those effects
stemming solely from reduced availability of third party services
in France. We are particularly proud of our field staff,
which has maintained production operations in all of our business
units, including jurisdictions that have been particularly hard hit
with COVID-19.
During the first quarter of 2020, we executed a front-loaded
capital program, in part to mitigate the risk of another season of
post break-up weather delays. Given the events that have
transpired over the past several weeks with respect to the COVID-19
pandemic, we believe this program will prove to be beneficial to
Vermilion in several ways. The timing of this program allowed
us to complete most of our drilling and completion activity before
physical distancing measures were necessary, minimizing health
risks to our employees and contractors. Furthermore, our
capital program has established a significant amount of production
capacity, which will benefit us throughout the year as we minimize
capital expenditures for the remainder of 2020.
Production during the quarter averaged 97,154 boe/d, down
slightly from the prior quarter, primarily due to natural decline,
unplanned downtime in Australia,
minor COVID-19 impacts, and the timing of new well
completions. We drilled several wells in Canada that were more prolific than we
anticipated, and brought these wells on production after the end of
the first quarter. We continued to advance permitting in
the Netherlands including the
recently completed Weststellingwerf well (0.5 net) well, for which
we are currently awaiting the final production permit. In
Australia, although somewhat
delayed by cyclone activity, we successfully completed the electric
submersible pump (ESP) installation on two wells, which has
enhanced our production capacity at Wandoo. Pricing for our
Wandoo crude has significantly improved with the implementation of
the new IMO 2020 regulation at the start of the year, resulting in
an average realized premium of C$29/bbl over dated Brent for Q1 2020.
We generated $170 million of FFO
during the quarter, which was down 21% from the prior quarter
primarily due to weaker commodity prices. Crude oil prices
started the year on solid footing with WTI and Brent benchmarks
reaching over US$63 and US$70 per barrel respectively in early
January. As the rapid spread of COVID-19 took hold during the
quarter, global oil prices declined due to associated demand
destruction, and the price decline was exacerbated by the OPEC+
price war in early March. This rapid decline in oil prices
had a significant negative impact on our cash flows during the
first quarter and our projections for the balance of the year.
In response, we reduced our monthly dividend by 50% and
announced an $80 to $100 million reduction to our capital budget in
early March. We now expect to reach the upper end of this
capital reduction range. In addition, we have identified
$35 million in expense savings to be
executed in 2020, and are continuing to identify greater
reductions. Commodity market conditions continued to
deteriorate throughout March and early April, at which point we
decided to suspend our monthly dividend until further notice.
The basis for suspending the dividend is to preserve liquidity and
protect Vermilion's financial position during this period of global
economic turmoil. Maintaining balance sheet strength has
always been our top financial priority and we believe the
suspension of our monthly dividend supports that objective.
We also believe that this will better position us for the economic
and commodity recovery that we expect will ensue when the world
economy emerges from the COVID-19 crisis.
Since the beginning of March 2020,
our projected annualized cash outlays for dividends, capex and
expenses have been reduced by over $550
million. Under the current commodity strip, we expect
to generate positive free cash flow for the last three quarters of
2020. Looking forward, Vermilion fully intends to exit this
period of economic turmoil in a position of enhanced strength to
resume a capital markets model that includes returning cash to our
shareholders.
In Q1 2020, we negotiated and closed an extension to our
$2.1 billion revolving credit
facility to extend the maturity to May
31, 2024. All other terms within the facility remained
the same. As at March 31, 2020,
we had over $500 million of undrawn
capacity on this facility.
To date, the vast majority of our operations have not been
interrupted by the pandemic, aside from minor timing delays in
capital projects in several business units as we put COVID-19
protocols in place. As mentioned previously, we have made the
necessary adjustments to our daily working practices to maximize
business continuity. The only meaningful impact has been in
France where government-mandated
confinement resulting in work restrictions has limited our ability
to complete well workovers beginning in March. In addition,
we have been forced to curtail some of our production in the
Paris Basin due to a temporary
shutdown of the Grandpuits refinery because of reduced product
demand. At present, these COVID-19 impacts are estimated to
total approximately 2,000 boe/d on an annualized basis.
Q1 2020 Operations Review
Europe
In France, Q1 2020 production
averaged 9,957 boe/d, a decrease of 3% from the prior quarter
primarily due to higher than normal well downtime. The
COVID-19 confinement measures put in place by the France government in mid-March restricted our
ability to complete well workovers and facility maintenance.
In addition, the Total-operated Grandpuits refinery temporarily
shut down operations in late March due to low product demand caused
by COVID-19. As a result of the Grandpuits refinery closure
and reduced well servicing activity, we will temporarily reduce our
French production by about one-third during the second quarter of
2020.
In the Netherlands, Q1 2020
production averaged 8,143 boe/d, a slight increase from the prior
quarter. The increase was primarily due to higher uptime
across our asset base, partially offset by natural decline.
We continue to advance the permitting for future planned wells
while awaiting the final production permit for our Weststellingwerf
well (0.5 net).
In Ireland, production averaged
41 mmcf/d (6,896 boe/d) in Q1 2020, a decrease of 2% from the prior
quarter. The decrease was primarily due to natural decline,
partially offset by higher uptime at the Corrib natural gas
processing facility compared to the prior quarter.
In Germany, Q1 2020 production
averaged 3,349 boe/d, a slight decrease from the prior
quarter. The decrease was primarily due to planned downtime
to perform various workovers and facility maintenance, but was
partially offset by improved uptime at one of our operated oil
fields following the completion of pipeline maintenance.
In Central and Eastern Europe
("CEE"), production averaged 546 boe/d in Q1 2020, nearly double
the level from the prior quarter reflecting a full quarter
contribution from the two (1.3 net) Hungarian wells tied-in midway
through the fourth quarter of 2019.
North America
In Canada, production averaged
59,537 boe/d in Q1 2020, an increase of 2% from the prior
quarter. The increase was primarily due to production
contributions from new well start-ups partially offset by natural
decline. We drilled or participated in 77 (67.4 net) wells in
the first quarter of 2020, 15 (15.0 net) of which were drilled in
Alberta and 62 (52.4 net) drilled
in Saskatchewan. In both Alberta and Saskatchewan, we observed strong performance
from wells drilled in the quarter, with several wells performing
ahead of expectations. We brought 13 (13.0 net) wells on
production in Alberta and 55 (48.0
net) wells on production in Saskatchewan during the quarter. We have
completed all of our planned drilling activity in Canada for the year, with the majority of
these wells completed and tied-in prior to spring break-up in
mid-April.
In the United States, Q1 2020
production averaged 4,685 boe/d, a decrease of 18% from the prior
quarter. The decrease was primarily due to natural decline
and increased downtime. During Q1, we drilled nine (8.9 net)
wells and completed and tied-in three (2.9 net) of these wells at
the end of the quarter. The remaining six (6.0 net) wells
were completed in April and are undergoing tie-in activities.
This constitutes the completion of our planned drilling and
completion activities for 2020 in the
United States.
Australia
In Australia, production
averaged 4,041 bbl/d in Q1 2020, a decrease of 11% from the
previous quarter, primarily due to planned and unplanned downtime,
which stemmed from the installation of electric submersible pumps
on two of our wells and cyclone activity during the quarter.
The cyclone forced us to temporarily halt Wandoo production and
delayed completion of the ESP installations and well startup.
Installation of the ESPs was successfully completed during the
quarter and the wells are on production. Our crude sales
during the quarter realized an average price that was approximately
C$29 per barrel above Dated Bent,
reflecting an increased premium for our Wandoo Crude following the
implementation of IMO 2020 regulations.
Dividend and Capital Reductions
In March, we reduced our monthly dividend by 50% to $0.115 per share and announced an $80 to $100 million
reduction to our annual capital budget in response to the COVID-19
pandemic and the resulting negative impact on near-term oil demand
and prices. We now expect to achieve the high end of this
capital reduction range. In addition, subsequent to the first
quarter, our board of directors suspended the monthly dividend as a
further measure to strengthen the financial position of the company
during this period of weak commodity prices.
Commodity Hedging
Vermilion hedges to manage commodity price exposures and
increase the stability of our cash flows. In aggregate, as of
April 21, 2020, we currently have 66%
of our expected net-of-royalty production hedged for Q2 2020.
For 2020 as a whole, approximately 49% of our production is hedged,
with 82% of our hedge position in two-way and three-way collar
structures.
With respect to individual products within our product mix, we
have hedged 79% of anticipated European natural gas volumes for Q2
2020. We have also hedged 75% of our anticipated full-year
2020 European natural gas volumes at prices which are expected to
provide for strong project economics and free cash flows. At
present, 61% of our expected Q2 2020 oil production is
hedged. For Q2 2020, 67% of our North American natural gas
production is priced away from AECO, with a variety of contracts to
sell gas at the SoCal Border, Henry Hub, Saskatchewan and Wyoming.
In addition to the percentages that are shown above for swaps
and collars, we have transacted WTI calendar spreads to protect an
additional 16% of our Q2 2020 and Q3 2020 oil production.
Please refer to the Hedging section of our website under Invest
With Us for further details.
Sustainability
Vermilion was named to the CDP Climate Leadership Level (A-) for
the third consecutive year in 2019. We were one of only two
Canadian oil and gas companies and one of only four North American
oil and gas companies to receive this designation, ranking
Vermilion in the top 6% of oil and gas companies globally. We
are proud of this achievement and believe this ranking is a
reflection of our focus on sustainable oil and gas production,
responsible operating practices and positive track record of
reducing emissions from our assets. We will continue to seek
new and innovative ways to improve our overall operating
performance while reducing the emission intensity of our
assets. We fully intend to maintain our focus on ESG despite
the economic upheaval wrought by COVID-19.
(signed "Anthony Marino")
Anthony Marino
President & Chief Executive Officer
April 28, 2020
(1)
|
Non-GAAP Financial
Measure. Please see the "Non-GAAP Financial Measures" section
of the accompanying Management's Discussion and
Analysis.
|
Annual General Meeting Webcast
Vermilion will hold its Annual General and Special Meeting on
April 28, 2020 at 3:00 pm MT. With the emergence of COVID-19,
and in light of limits on larger gatherings and our concern for the
health and safety of our employees and shareholders, our meeting
will be held virtually. Shareholders can participate
electronically at https://web.lumiagm.com/131477895. Please see our
Virtual Meeting Guide at
https://www.vermilionenergy.com/files/2020_Virtual_Meeting_Guide.pdf for
detailed instructions on how to access the meeting, vote on
resolutions and submit questions. Following the formal
portion of the meeting, a presentation will be given by
Anthony Marino, President &
Chief Executive Officer. Guests may also view the event at
https://web.lumiagm.com/131477895 by registering as a
guest. The live webcast link, webcast slides, and archive
webcast link will be available on Vermilion's website at
http://www.vermilionenergy.com/ir/eventspresentations.cfm.
About Vermilion
Vermilion is an international energy producer that seeks to
create value through the acquisition, exploration, development and
optimization of producing properties in North America, Europe and Australia. Our business model
emphasizes free cash flow generation and returning capital to
investors when economically warranted, augmented by moderate
organic production growth and value-adding acquisitions.
Vermilion is targeting growth in production primarily through the
exploitation of light oil and liquids-rich natural gas
semi-conventional resource plays in Canada and the
United States, the exploration and development of high
impact natural gas opportunities in the
Netherlands and Germany,
and through oil drilling and workover programs in France and Australia. Vermilion holds a
20% working interest in the Corrib gas field in Ireland.
Vermilion's priorities are health and safety, the environment,
and profitability, in that order. Nothing is more important
to us than the safety of the public and those who work with us, and
the protection of our natural surroundings. We have been
recognized as a top decile performer amongst Canadian publicly
listed companies in governance practices, as a Climate Leadership
level (A-) performer by the CDP, and a Best Workplace in the Great
Place to Work® Institute's annual rankings in Canada, the
Netherlands, and Germany. In addition, Vermilion
emphasizes strategic community investment in each of our operating
areas.
Employees and directors hold approximately 5% of our fully
diluted shares, are committed to consistently delivering superior
rewards for all stakeholders, and have delivered over 20 years of
market outperformance. Vermilion trades on the Toronto Stock
Exchange and the New York Stock Exchange under the symbol VET.
Disclaimer
Certain statements included or incorporated by reference in this
document may constitute forward-looking statements or financial
outlooks under applicable securities legislation. Such
forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an
outlook. Forward looking statements or information in this
document may include, but are not limited to: capital expenditures
and Vermilion's ability to fund such expenditures;
Vermilion's additional debt capacity providing it with additional
working capital; the flexibility of Vermilion's capital program and
operations; business strategies and objectives; operational and
financial performance; estimated volumes of reserves and resources;
petroleum and natural gas sales; future production levels and the
timing thereof, including Vermilion's 2020 guidance, and rates of
average annual production growth; the effect of changes in crude
oil and natural gas prices, changes in exchange rates and
significant declines in production or sales volumes due to
unforeseen circumstances; the effect of possible changes in
critical accounting estimates; statements regarding the growth and
size of Vermilion's future project inventory, and the wells
expected to be drilled in 2020; exploration and development plans
and the timing thereof; Vermilion's ability to reduce its debt,
including its ability to redeem senior unsecured notes prior to
maturity; statements regarding Vermilion's hedging program, its
plans to add to its hedging positions, and the anticipated impact
of Vermilion's hedging program on project economics and free cash
flows; the potential financial impact of climate-related risks;
acquisition and disposition plans and the timing thereof; operating
and other expenses, including the payment and amount of future
dividends; royalty and income tax rates and Vermilion's
expectations regarding future taxes and taxability; and the timing
of regulatory proceedings and approvals.
Such forward-looking statements or information are based on a
number of assumptions, all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things: the ability of Vermilion to obtain equipment, services and
supplies in a timely manner to carry out its activities in
Canada and internationally; the
ability of Vermilion to market crude oil, natural gas liquids, and
natural gas successfully to current and new customers; the timing
and costs of pipeline and storage facility construction and
expansion and the ability to secure adequate product
transportation; the timely receipt of required regulatory
approvals; the ability of Vermilion to obtain financing on
acceptable terms; foreign currency exchange rates and interest
rates; future crude oil, natural gas liquids, and natural gas
prices; and management's expectations relating to the timing and
results of exploration and development activities.
Although Vermilion believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because Vermilion can give no assurance that such expectations will
prove to be correct. Financial outlooks are provided for the
purpose of understanding Vermilion's financial position and
business objectives, and the information may not be appropriate for
other purposes. Forward-looking statements or information are
based on current expectations, estimates, and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by
Vermilion and described in the forward-looking statements or
information. These risks and uncertainties include, but are
not limited to: the ability of management to execute its business
plan; the risks of the oil and gas industry, both domestically and
internationally, such as operational risks in exploring for,
developing and producing crude oil, natural gas liquids, and
natural gas; risks and uncertainties involving geology of crude
oil, natural gas liquids, and natural gas deposits; risks inherent
in Vermilion's marketing operations, including credit risk; the
uncertainty of reserves estimates and reserves life and estimates
of resources and associated expenditures; the uncertainty of
estimates and projections relating to production and associated
expenditures; potential delays or changes in plans with respect to
exploration or development projects; Vermilion's ability to enter
into or renew leases on acceptable terms; fluctuations in crude
oil, natural gas liquids, and natural gas prices, foreign currency
exchange rates and interest rates; health, safety, and
environmental risks; uncertainties as to the availability and cost
of financing; the ability of Vermilion to add production and
reserves through exploration and development activities; the
possibility that government policies or laws may change or
governmental approvals may be delayed or withheld; uncertainty in
amounts and timing of royalty payments; risks associated with
existing and potential future law suits and regulatory actions
against Vermilion; and other risks and uncertainties described
elsewhere in this document or in Vermilion's other filings with
Canadian securities regulatory authorities.
The forward-looking statements or information contained in this
document are made as of the date hereof and Vermilion undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events, or otherwise, unless required by applicable
securities laws.
All crude oil and natural gas reserve and resource information
contained in this document has been prepared and presented in
accordance with National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities and the Canadian
Oil and Gas Evaluation Handbook. Reserves estimates have been
made assuming that development of each property in respect of which
the estimate is made will occur, without regard to the likely
availability of funding required for such development. The
actual crude oil and natural gas reserves and future production
will be greater than or less than the estimates provided in this
document.
Natural gas volumes have been converted on the basis of six
thousand cubic feet of natural gas to one barrel of oil
equivalent. Barrels of oil equivalent (boe) may be
misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet to one barrel of oil is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Financial data contained within this document are reported in
Canadian dollars unless otherwise stated.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/vermilion-energy-inc-announces-results-for-the-three-months-ended-march-31-2020-301048700.html
SOURCE Vermilion Energy Inc.