In its end of year results, Vermilion said performance at the sidetrack had been strong, at about 3,900 barrels of oil per day over the last six weeks of 2015.
“Following this success, we are planning a two-well drilling program in Australia for 2016,” the company said in an announcement.
“Offshore drilling in Australia requires a great deal of advance contracting and logistical planning, which means that full-cycle costs are minimised by proceeding with this program in 2016 despite current oil price weakness.”
“Furthermore, we expect service costs to be near their lows in 2016 at the time of drilling, making this a desirable time to drill these high- quality sidetrack locations.”
Vermilion spent C$40.9 million in Australia during the fourth quarter of 2015, most of it related to the horizontal sidetrack drilling program.
At the same time Vermilion recorded a 22 per cent rise in the value of sales of oil equivalent in the quarter, which the company attributed to an increase in volumes sold, coupled with a fall in the oil price. Despite the quarter on quarter rise, sales were 43% lower over 2015 compared to 2014.