Vermilion Energy Inc. said Monday that it intends to acquire Equinor Energy Ireland Ltd. for $434 million, increasing its stake in the Corrib gas field off the shores of Ireland.
The acquisition will bring the Calgary, Alberta-based oil-and-gas producer’s interest in Corrib to around 56.5%.
Additionally, it will add around 23 million barrels of oil equivalent of proven and probable reserves, and is expected to produce around 7,700 barrels of oil a day in 2022, the company said.
The acquisition is forecast to generate around $365 million of funds from operations and $361 million of free cash flow in 2022, the company said.
The company said it now expects pro-forma FFO to be more than $1.45 billion in 2022, with FCF exceeding $1 billion.
It also said it will reinstate a six-cent-a-share quarterly dividend beginning in the first quarter of next year.
“The Corrib acquisition will significantly enhance the company’s FCF profile and ability to return additional capital to shareholders,” the company said.