Dublin Shell to Sea

A Canadian-based firm, which claims to be "responsible", is to acquire Marathon's 18.5% share in the Corrib gas giveaway (1).  Marathon's share in the controversy-ridden Corrib gas project is to be sold on to Canadian firm Vermillion Energy Trust, which claims to "live and breathe" a motto of "excellence, trust, respect and responsibility every day".

Calgary-based Vermilion is to pay US$100 million to Marathon on closing of the deal, which is expected to occur before the end of 2009, according to a press statement released on June 24 (2). A second payment of approximately US$300 million to US$135 million will be paid to Marathon if the first gas from the field is achieved (2).

"We’re a responsible producer, and we care about the communities we work in. It’s not just lip service," Lorenzo Donadeo, the President & CEO of Vermillion recently told Canadian Business Online. "We’ve got really strong corporate values that we try to live and breathe every day. They’re centred around excellence, trust, respect and responsibility", he said. "Vermilion considers itself a responsible energy producer, and as a responsible energy producer we’re a company committed to the care of our people and the environment, and we also like to ensure that we enrich the communities in which we live and work in", added Donadeo (3).

Contacts:
Lorenzo Donadeo, President & CEO;
Paul Beique, VP Capital Markets

Vermilion Energy Trust
2800, 400 4th Avenue SW
Calgary, Alberta T2P 0J4

Phone 1-403-269-4884
investor_relations@vermilionenergy.com
community@vermilionenergy.com

References:

(1) Vermillion's 'responsibility' webpage
http://www.vermilionenergy.com/responsibility/community...t.cfm

(2) Press release about sale of stake
http://www.vermilionenergy.com/files/pressreleases-2009...4.pdf

(3)Interview with Lorenzo Donadeo, the President & CEO of Vermillion, published on March 12, 2009
http://www.canadianbusiness.com/managing/ceo_interviews..._7236

First posted to indymedia.ie at http://www.indymedia.ie/article/92860

A google news search came up with this gem, presumably quoting Vermilion execs themselves or sources in the 'trust'

"'Given the advanced stage of the project, the risk of major cost overruns is considered manageable,' Vermilion said.

"The Corrib field is expected to produce gross volumes in excess of 300 million cubic feet per day of natural gas for a period of two to four years before experiencing natural declines of 20 percent. Net production to Vermilion is initially anticipated at approximately 9,000 barrels of oil equivalent per day.

"Current net reserves attributable to Vermilion from the Corrib field have been estimated by the Trust's independent reserve engineers at 17.5 million boe effective as at January 1 2009, although Vermilion believes that future development and/or production performance could increase reserves up to 35 million boe, according to internally prepared estimates of the ultimate potential.

"The field, which is estimated to contain approximately 1.0 trillion cubic feet of natural gas in place, lies in 350 metre water depth and will initially produce from five wells, all of which have been completed and tested and are currently being tied into a subsea template.

"The wells will be tied into an onshore gas treatment facility that is 75 percent completed and then into Ireland's natural gas grid. Several other prospects on the exploration license have been identified that could further extend the life of these assets if successfully drilled and completed.

"One of these prospects, North Corrib, is being considered for drilling in 2010 after recently obtaining partner approval. The cost to drill these prospects would be approximately US$10 million per well, net to Vermilion, providing significant upside opportunity at relatively low cost."

I'd figure that Bertie Ahern and Ray Burke are responsible for that 'relatively low cost'!