RE:Key Insights from Vermilion's CFO That a great post, and I emailed Investor Relations after the confrence call and asked them why not hedge 90% of gas at those prices and accelerate development.
From Vermilion IR-
"Thank you for the email, good to hear from you again. For the Euro gas hedges, while we are looking to increase our hedges in place it would be more for future years 2026/27. Going to 90% would have a new set of challenges/risks, namely having the ability to do so (hedge value secured by credit can be a limiting factor) and the risk that if we are unable to meet our volume commitment (due to maintenance or other outages) we would be forced to buy in the market to fulfill our contract. We see hedging 50-60% of any individual commodity as the high end and may end up landing there for Euro gas in the shorter-term."
TTF day ahead price deck Q3 was $15.52 (Europe compared to 65 cents AECO)
In Canada ARX was $1.78 a MMcf, Tou $3.19 MMcf for the quarter.
So this is a amazing opportunity in a market where 1000 boe/day of gas in europe trades between (8.7 times and 4.86 times) hedged return north america major Market Producers.
Vermilion balance sheet is strong, and drilling a third well in germany 100% is exciting, and the Germany opportunity could be a bonanza for the company.
I am really excited for what could happen in 2025.
IMHO