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Veren Inc T.VRN

Alternate Symbol(s):  VRN

Veren Inc. is a Canada-based oil producer with assets in central Alberta and southeast and southwest Saskatchewan. The principal activities of the Company are acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries. Its core operational areas include Kaybob Duvernay and Alberta Montney, Shaunavon and Viewfield Bakken. Its Kaybob Duvernay is situated in the heart of the condensate rich fairway, Central Alberta, which provides low risk drilling inventory. Its Alberta Montney assets sit adjacent to its Kaybob Duvernay lands, possessing similar resource characteristics including pay thickness and permeability in the volatile oil fairway of the reservoir. Its Shaunavon resource play is located in southwest Saskatchewan. The Viewfield Bakken light oil pool is located in Saskatchewan.


TSX:VRN - Post by User

Post by sebastian2on Nov 03, 2024 1:35pm
261 Views
Post# 36294338

2025 revision in production driving the price

2025 revision in production driving the priceBasically the impact of revisions on 2024 is minimal ~1%.  What spooked the market is the revision of 2025 guidance from 204K boe/d to a range of 188-196K boe/d.  Now several things stand out.  One is that production volumes are now bottlenecked at the Hammerhead Facilities they aquired.  A $50M comitment to debottleneck is planned.  At Karr the comany completed two multiwell pads with the, lets call it experimental, approach of P&P which yielded IP30 rates of 1,000-1300 boe/d.  It seems the company is not rethinking this given the results with P&P at Gold Creek lagging the flows from SPE wells they observed so they have switched the strategy for the remaining three multi well pads at Karr to SPE.  Those are supposed to come on line late in 2024.   So there is a potential for an upside once cvompleted if the expected higher flow rates get acheived from the SPE wells at Karr.  Similarly some upside may be achieved with the de-bottlenecking at Hammerhead but I suspect that was already factored into the 2025 guidance as a known impact.   Still it seems possible that the 2025 projection was revised to manage expectations and may result in upward revision later on based on actual results.  Geology differences between Gold Creek and Karr would play a factor so this is not a given.  Time will tell. 
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