Vermilion to buy Vintage's Trinidad Central Block interest

Vermilion Resources Ltd., Calgary, agreed to acquire from Vintage Petroleum Inc., Tulsa, a 65% participating interest in and operatorship of the Trinidad onshore Central Block.

June 17, 2002

By OGJ editors

HOUSTON, June 17 -- Vermilion Resources Ltd., Calgary, agreed to acquire from Vintage Petroleum Inc., Tulsa, a 65% participating interest in and operatorship of the Trinidad onshore Central Block. The $40 million deal is to close by the end of June.

The block contains two successful 2001 exploratory natural gas wells, one of which Vermilion said is contemplated to be tied in by yearend 2002 for a 6-month production test.

The Carapal Ridge and Corosan wells contain proved reserves of 64.4 bcf of gas and more than 1 million bbl of condensate. The block contains other prospects (OGJ, Apr. 1, 2002, p. 41).

Petroleum Co. of Trinidad and Tobago Ltd. (Petrotrin) has a 35% participating interest in
the Central Block, subject to government approvals. Aventura Energy Inc., Calgary, will also hold an interest.

The acquisition will establish a third core area for Vermilion, which operates in Western Canada and France.

Vintage is amidst a plan to reduce long-term debt by $200 million and refocus on North America. It said, "The long-term benefits associated with the development of the gas markets in Trinidad are a better strategic fit for other companies."