PROPERTY ACQUISITIONS / Vermilion buys N.Alberta production
VERMILION SIGNS LETTER AGREEMENT TO PURCHASE SHARES OF
PRIVATE CANADIAN COMPANY
CALGARY, ALBERTA--
Vermilion Resources Ltd. "VRM" announces that it has signed a
letter agreement to purchase all of the outstanding shares of a
private Canadian company whose principal asset is a crude oil
producing property.
This operated property located in northern Alberta produces light
crude oil, has an average working interest of 55% in over 52,000
gross acres of land, includes an operated battery capable of
processing 13,000 barrels of crude oil per day, an associated gas
facility, and an extensive infrastructure of roads and pipelines.
This property represents a new core area for the Company, and
Vermilion views it as having significant exploration, development
and exploitation potential for both crude oil and natural gas.
This strategic acquisition is to be financed through the
Company's existing credit facilities and will add approximately
1,800 Boe/d of net production.
The letter agreement remains subject to execution of a formal
purchase and sale agreement and standard closing conditions for
a transaction of this nature. Closing of this deal is anticipated
by December 1, 1998.
Vermilion Resources Ltd. is a publicly traded Canadian resource
company with domestic and international operations. The Company's
primary objective is to maximize shareholder value by managing
risk as it builds resource assets through the acquisition,
exploitation and exploration of natural gas and crude oil.
For further information, please contact:
Mr. Jeff Boyce Mr. Stephen Bjornson
President Vice President Finance
& C.E.O. & Corp. Secretary
Vermilion Resources Ltd. Vermilion Resources Ltd.
(403) 269-4884 (403) 269-4884
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