European Gas .vs. AECO - (1 boe EURO gas > 10 boe AECO )Currently VET sells about 60 MMcf of Europe gas on the spot maket. 60 MMcf is about 10,000 boe/day of gas on the spot market
The Market price for gas is about 48.595 EURO Jan 25 (Dutch TTF Natural Gas Futures)
That is about 48.595 * .293 (Conversion) *1.48 (Euro - Canadian) = $21.04 Candian MMcf
It is very complicated because they have many markets they are selling gas into in Europe, with different prices.
In Q3 Ireland = $14.60 , Netherlands $14.69, Central/East Europe $15.75
With Gas currently trading around the $20 - $21 dollar mark a MCF in Europe.
Vet has approx 60 million a day unhedged, lets say that sell gas for a 5 dollar premium in Q4 2024.
60 MMcf * $5 mcf = $300,000 day (92 days) roughly 27.6 million dollars for the quarter Q4.
International will be big in Q4 with Croatia Gas ramping up, Wandoo ramping up in Europe, and the Gas price spiking in Europe.
Also Canadian gas will be up, my guess is they will bring on the shut in gas volumes, while oil has been marginal this quarter.
IMHO
MHP