Vermilion Says Canadian Investment Angst Won Better Spartan Deal
- Gloom about companies leaving created ‘great value,’ CEO says
- Driller’s $913 million Spartan deal adds Saskatchewan output
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Vermilion Energy Inc. Chief Executive Officer Anthony Marino said the concerns about the Canadian oil industry’s competitiveness helped his company secure a better price in its purchase of Spartan Energy Corp. this year.
Vermillion bought Spartan for about C$1.18 billion ($910 million) in stock to bulk up its light-oil production and acreage in southeast Saskatchewan in a deal that closed earlier this month. Spartan’s holdings aren’t affected by the pipeline bottlenecks that have plagued heavy oil producers in Alberta, and they’re in a province that has been more consistently supportive of the oil industry, Marino said in an interview with Bloomberg Television in New York.