Vermilion Energy Inc. has agreed to acquire Spartan Energy Corp., which produces oil and natural gas in southeastern Saskatchewan, in a stock deal worth $1.4 billion (Can.). Both companies are based in Calgary.
Vermilion will acquire all Spartan shares through an exchange of its shares worth $1.23 billion and assumption of $175 million in debt.
Spartan produces about 23,000 boe/d of light oil and gas, 91% oil.
Its production is from 480,000 net acres, with average working interest of 80%, including 400,000 net acres with multizone potential.
Spartan also holds 80,000 net acres in other areas of Saskatchewan, Alberta, and Manitoba.
Reserves are 73 million boe (92% crude oil and natural gas liquids) proved and 113.5 million boe (92% crude and NGL) proved plus probable.
Vermilion said it has identified more than 1,000 development locations amenable to open-hole completions not requiring hydraulic fracturing. It also has identified locations in the Mississippian Midale play, which requires hydraulic fracturing as well as waterflood opportunities in Midale and Mississippian Ratcliffe zones.
