On a 2022 full-year pro forma basis, European natural gas will represent approximately 22% of our production and approximately 42% of FFO.

Vermilion's operated interest in Corrib will increase to 56.5% upon closing, significantly increasing our exposure to premium priced European natural gas.

Based on forward commodity prices, the Corrib Acquisition is forecast to generate approximately $365 million of FFO and $361 million of FCF in 2022 which equates to an FFO and FCF netback of approximately $130/boe.

The Corrib Acquisition will add approximately 23 mmboe of 2P reserves and is expected to produce approximately 7,700 boe/d in 2022.

In addition, we estimate the transaction to be approximately 11% deleveraging in 2022 with incremental deleveraging and accretion expected in 2023 and beyond. We estimate 2022 full-year pro forma (2) FFO per share accretion of approximately 33% and FCF per share accretion of approximately 53%, based on forward commodity prices (3).

The purchase price represents a funds flow from operations ('FFO') multiple of approximately 1.5 times.

As part of the transaction, we have entered into an agreement with Equinor to hedge approximately 70% of the production for 20 which provides high certainty of an approximate two-year payback period. We estimate a cash payment on closing in the range of $200 to $300 million, depending on the actual closing date, which we expect to fund within 2022 FCF.

The cash payment on closing will be reduced by the interim free cash flow ('FCF')(1) generated from the effective date to closing.

The transaction has an effective date of Januand is expected to close during the second half of 2022 after all requisite approvals have been received.

Vermilion has entered into an agreement to acquire Equinor Energy Ireland Limited which owns a 36.5% interest in Corrib ('Corrib Acquisition') for total consideration of US$434 million ( $556 million), before closing adjustments and contingent payment.

('Vermilion', 'We', 'Our', 'Us' or the 'Company') (TSX: VET) (NYSE: VET) is pleased to announce the acquisition of an incremental 36.5% interest in the Corrib Natural Gas Project ('Corrib') and our 2022 Budget and Guidance. 29, 2021 /PRNewswire/ - Vermilion Energy Inc.

Cashflow 101 e game