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Canada: Business Acquisition Vermilion Energy Set to Acquire Oil and Gas Firm Spartan Energy Corp.

| Editor: Ahlam Rais

The acquisition will enable Vermilion Energy to increase its position in southeast Saskatchewan and is in line with the company’s sustainable growth-and-income model.

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The acquisition of Spartan is a value-adding investment for Vermilion and is in line with its disciplined M&A criteria.
The acquisition of Spartan is a value-adding investment for Vermilion and is in line with its disciplined M&A criteria.
(Source: Deposit Photos)

Calgary/Canada – Vermilion Energy has recently announced that it has entered into an arrangement agreement to acquire Spartan Energy Corp., a publicly traded southeast Saskatchewan oil and gas producer, with annual production of approximately 23,000 boe/d (91 % oil). Total consideration for Spartan is approximately 1.40 billion dollars, comprised of 1.23 billion dollars in Vermilion shares plus the assumption of approximately 175 million dollars in debt.

Under the terms of the arrangement, Vermilion has agreed to acquire all of the common shares of Spartan issued and outstanding at the effective time of the arrangement. The Board of Directors of Vermilion and Spartan have unanimously approved the Arrangement and recommended that Spartan shareholders vote in favour of the Arrangement. The Arrangement remains subject to customary closing conditions, including receipt of applicable court, Spartan shareholder, and other regulatory approvals, and is expected to close on or about June 15, 2018.

The acquisition of Spartan is a value-adding investment for the company that meets its disciplined M&A criteria. The Acquisition significantly increases its position in southeast Saskatchewan, and aligns with its sustainable growth-and-income model by appending high-netback, low decline assets with free cash flow and strong capital efficiencies on future development.

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