Vermilion Energy Inc. Divests Additional Shares of Coelacanth Energy Inc.

On December 17, 2025, Vermilion Energy Inc. announced a substantial reduction in its holdings of Coelacanth Energy Inc., selling 26 million common shares at a price of $0.76 per share. This transaction amounts to a total of $19,760,000, marking more than 2% of the total issued and outstanding shares of Coelacanth and thereby necessitating an early warning report as per regulatory requirements.

Prior to this sale, Vermilion controlled approximately 15.0% of Coelacanth's total common shares, equating to about 80,179,104 shares. Following the latest transaction, their stakes have been reduced to 54,179,104 shares, which is about 10.2% of the total issued shares of Coelacanth. This strategic shift aligns with Vermilion's ongoing priority to reduce its debt and bolster the resilience of its operations in the energy market.

The decision to sell was rooted in Vermilion's broader strategy of focusing on financial health. The company aims to optimize its diverse portfolio, which emphasizes the acquisition and development of liquid-rich natural gas, as well as enhancing free cash flow amid fluctuating global commodity prices. The share sale is part of Vermilion’s commitment to maintaining a balanced and responsible approach in managing its investments, especially in light of changing economic conditions and market trends.

Moving forward, Vermilion Energy intends to keep assessing its investment in Coelacanth. There is potential for future transactions to either increase or decrease their investment based on factors such as market dynamics, broader economic conditions, and amendments to the existing investor rights agreement with Coelacanth. Importantly, the company's ability to sell more than 4 million common shares of Coelacanth will require the consent of Coelacanth, emphasizing the importance of maintaining a cooperative relationship between the two firms.

Vermilion Energy Inc. is characterized as a global player in the gas industry, striving for value creation through strategic acquisitions, exploration, and development activities, particularly focused on liquids-rich natural gas within Canada and conventional natural gas in Europe. With a stringent approach to health, safety, and environmental sustainability, Vermilion aims to protect public safety and natural habitats while ensuring profitability. The company trades under the symbols TSX: VET and NYSE: VET on major stock exchanges.

For those interested in looking deeper into Vermilion's activities, the Early Warning Report has been filed under Coelacanth's profile on SEDAR+ and is readily accessible for all stakeholders. As Vermilion navigates its financial and operational pathways, market participants will keenly observe how these strategic decisions shape their future endeavors and influence the energy sector.

This recent share sale signifies not just a corporate maneuver, but a clear reflection of Vermilion's dedication to prudent capital management practices and its ongoing commitment to fostering robust operational resilience amid changing industry landscapes.