Vermilion Energy Inc. is pleased to announce that we have closed the acquisition of Spartan Energy Corp. ("Spartan") for total consideration of $1.40 billion, comprised of $1.23 billion in Vermilion shares (valued at closing price prior to announcement) plus the assumption of approximately $175 million in debt, pursuant to the terms of the previously announced arrangement agreement (the "Arrangement").

Under the terms of the Arrangement, Vermilion acquired all of the issued and outstanding common shares of Spartan on the basis of 0.1476 of a Vermilion share for each Spartan common share, resulting in the issuance of 27.9 million Vermilion common shares (the "Acquisition").

The Spartan common shares will be delisted from the TSX in approximately 2 or 3 trading days. The Vermilion shares issued to the former holders of Spartan common shares pursuant to the Arrangement will be listed on the TSX and NYSE under the symbol "VET".

The Spartan assets are comprised of high-netback, light oil producing properties covering approximately 480,000 net acres of land (80% average working interest), including 400,000 net acres in southeast Saskatchewan with multi-zone potential. In addition, the Acquisition includes approximately 80,000 net acres of land in other areas of Saskatchewan, Alberta and Manitoba. Production from the assets is projected to be approximately 23,000 boe/d (91% oil) during 2018. The Acquisition also includes ownership and control of producing infrastructure that are synergistic with our existing assets, as well as significant 2D and 3D seismic data. Under the current commodity strip, we expect the assets to generate cash flow in excess of capital requirements for continued growth plus the incremental gross dividends associated with the new shares issued.

We look forward to integrating Spartan employees into our organization, and believe our combined enterprise will have the operating, technical and financial capability to maximize the value of our combined southeast Saskatchewan assets.

Credit Facility Extension and Increase

We have negotiated an extension of our revolving credit facility with our syndicate of lenders to May 31, 2022. We elected to increase the total facility amount to $1.6 billion from $1.4 billion, maintaining roughly the same unutilized capacity as before the Acquisition.

About Vermilion

Vermilion (TSX, NYSE: VET) is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Our business model emphasizes organic production growth augmented with value-adding acquisitions, along with providing reliable and increasing dividends to investors. Vermilion is targeting growth in production primarily through the exploitation of light oil and liquids-rich natural gas conventional resource plays in Canada and the United States, the exploration and development of high impact natural gas opportunities in the Netherlands and Germany, and through oil drilling and workover programs in France and Australia. Vermilion currently holds an 18.5% working interest in the Corrib gas field in Ireland. Vermilion pays a monthly dividend of Canadian $0.23 per share, which provides a current yield of approximately 6.0%.