(Adds capex details; updates share movement)
* Sets 2012 capital budget at C$630 mn, up 26 pct
* 2012 development budget at C$375 mln, down 25 percent
* Shares down about 2 pct
Dec 21 (Reuters) - Vermilion Energy said it expects production to rise up to 6 percent next year and raised its capital budget for the year by 26 percent to complete its acquisitions.
Vermilion, which operates in Western Canada, the Netherlands and Australia, said it sees 2012 production at 37,000-38,000 barrels of oil equivalent per day (boe/d) and backed its estimate of 35,000-36,000 boe/d for the current year.
It said it will spend 60 percent of its C$630 million ($612.78 million) capital budget for the next year on development activities and the remaining on paying for its already announced acquisitions.
The two acquisition-related payments in 2012 will be $135 million for the Corrib natural gas project in Ireland and about C$115 million to Total E&P France, a unit of the French oil giant Total SA, for assets bought earlier this week.
The company also cut its development budget to C$375 million for next year from C$501 million, in view of the volatility in commodity prices in recent months, fiscal uncertainty in several regions and its existing commitments, it said in a statement.
It also said it has hedged about 9,750 boe/d of next year’s production at an average floor price of C$82.55 per boe.
Shares of the company, which have lost about 8 percent of their value over the last six months, were trading down 2 percent at C$43.25 on Wednesday on the Toronto Stock Exchange.
$1 = 1.0281 Canadian dollars Reporting by Shounak Dasgupta in Bangalore; Editing by Sreejiraj Eluvangal