Vermilion Energy has closed the acquisition of Spartan Energy for total consideration of $1.40 billion, comprised of $1.23 billion in Vermilion shares (valued at closing price prior to announcement) plus the assumption of approx. $175 million in debt, pursuant to the terms of the previously announced arrangement agreement.

Under the terms of the Arrangement, Vermilion acquired all of the issued and outstanding common shares of Spartan on the basis of 0.1476 of a Vermilion share for each Spartan common share, resulting in the issuance of 27.9 million Vermilion common shares. 

The Spartan common shares will be delisted from the TSX in approx. 2 or 3 trading days.  The Vermilion shares issued to the former holders of Spartan common shares pursuant to the Arrangement will be listed on the TSX and NYSE under the symbol 'VET'.

The Spartan assets are comprised of high-netback, light oil producing properties covering approx. 480,000 net acres of land (80% average working interest), including 400,000 net acres in southeast Saskatchewan with multi-zone potential.  In addition, the Acquisition includes approx. 80,000 net acres of land in other areas of Saskatchewan, Alberta and Manitoba.  Production from the assets is projected to be approximately 23,000 boe/d (91% oil) during 2018.  The Acquisition also includes ownership and control of producing infrastructure that are synergistic with our existing assets, as well as significant 2D and 3D seismic data.  Under the current commodity strip, we expect the assets to generate cash flow in excess of capital requirements for continued growth plus the incremental gross dividends associated with the new shares issued.

Vermilion looks forward to integrating Spartan employees into our organization, and believe their combined enterprise will have the operating, technical and financial capability to maximize the value of their combined southeast Saskatchewan assets.