On March 28, 2022, Vermilion Energy Inc. acquired Leucrotta Exploration Inc. for a net cash value of $477 million. Leucrotta, a Montney-focused oil and gas company in Northeast British Columbia and Northwest Alberta, was purchased at $1.73 per share. Vermilion also obtained a 12.5% stake in ExploreCo, a new entity formed from part of Leucrotta's assets, for approximately $14 million. The acquisition promises to boost Vermilion's production to 13,000 boe/d by 2023, with a future target of 28,000 boe/d. This is expected to yield an annual free cash flow exceeding $200 million upon reaching the target production levels. Vermilion's 2022 production guidance increased to 86,000-88,000 boe/d, and the capital budget expanded to $500 million, considering the acquisition's closure in late May 2022. Vermilion aims to sustain production around 95,000 to 100,000 boe/d by year-end, aligning with its strategy of maximizing free cash flow and shareholder returns. The transaction is part of Vermilion’s strategic plan, contributing to a balanced $1.2 billion worth of acquisitions between international operations and North America for 2021 and 2022. The company remains on course to meet its $1.2 billion net debt target by the second half of 2022. CIBC Capital Markets served as the exclusive financial advisor, while Torys LLP provided legal counsel to Vermilion for this acquisition.