Vermilion Energy Inc. T.VET

colombia

[halitosis8]

I recall Eric Nuttal recently suggesting that VET should consider acquiring Parex Resources.  We're lucky VET management wasn't listening.  Colombia producers are shutting in production as civil unrest threatens to lead to civil war.

[Oldnagger]

Just took a quick look at Parex, they are spending a lot of time and money on community relations. As I recall this is not the first time there have been regional blockades. They seem to get solved over time though they are currently disrupting the drilling and completion program At first blush, Parex looks interesting due to net cash position, no debt, share buybacks and very high rate of

[halitosis8]

maybe so, but I lost money in Nigeria on an oil play.  I'm a bit wary about regional politics--maybe more than necessary.  VET is paying down about $1m per day in debt so it's just a matter of time before the sp recognizes that

[Oldnagger]

Digging down a bit deeper on Parex, they have net cash on their books and no net debt, so they could even sit still for a fairly lengthy period with minimal financial risk Columbia has evolved with time, most people are jobs driven, but there are still tensions  remaining from former times. Under current market conditions Parex has an ROCE about the same as VET ,but they do not have as high a

[Pandora]

Things are getting a little heated down there again. With the Latin spirits one never knows what can happen at any given time. Always a powder keg to be concerned about. https://www.thecanary.co/global/world-analysis/2021/05/09/strife-in-colombia-has-been-brewing-for-decades-heres-why-we-hear-so-little-about-it/

[Oldnagger]

I am surprised about your information source. My understanding fron the past is that the US and Canada were trying to help Columbia to find income sources other than drugs. Oil production was one obvious choice and Canadian firms stepped in with their expertise to help. I know there has been repeated conflict, but unlike the editors of The Canary , most of the  Columbians realize they have to

[Pandora]

The only thing I can say about the source "The Canary" is that their link seemed to hang up my computer for about 5 minutes as I tried to exit. :-))