Unidentified Shareholder's questions to Vermilion Energy Inc (VET) leadership • Q1 2024
Question
An unidentified shareholder inquired about the reasons behind the company's recent reserve write-downs.
Answer
President and CEO Anthony Hatcher clarified that the write-downs are a result of a strategic capital reallocation towards higher-return assets like the Montney. Consequently, other assets in Alberta and Saskatchewan are not in the 5-year development plan, leading to the derecognition of their reserves under accounting rules. He emphasized that the company still owns the land and prospects, but the focus is on developing the most profitable assets.