Post by
MyHoneyPot on Nov 11, 2024 3:19pm
Croatia + Germany a bonanza for FCF 2025
Croatia and Germany will be VET best netbacks in terms of wells.
Croatia
Production in Q3 2024 averaged 1,855 boe/d (100% European natural gas) and currently exceeds 2,000 boe/d. On the SA-7 block, we completed testing on the third well of our four-well program, at a reservoir depth of 885 metres, which flow tested at 5.6 mmcf/d(16) of natural gas.
So what this says they are currently producing more then 2000 boe/day, and now have 5.6 mmcf/day gas well to tie in. With a 4th well in the program to be drilled.
The current infastructure in Croatia is greater than 2000 boe/day, but there are two more wells that will be coming on. Croatia has the infastructure to produce between 5000 to 8000 boe/day so this is a growth area that will generate significant increased CF. I can't imagine why they would not tie this in as soon as possible, and they are very valuable and high netback wells.
I would expect that they would try to fill this infastructure in 2025, especially since they are familar with the geology and have identified infastructure.
Germany
In Q3 of 2024, Germany produced 5,167 boe/day. Since that first successful deep gas well VET said they would likely put it on production at 1000 boe/day, putting a well on that tested at 17 MMmcf day, on production at 6 MMcf day means very low declines. So it is likely that Germany will get 3 new gas wells in early (first half) 2025 at least. (2.3 wells net)
It is going to be exciting what the budget is for Germany in 2025, and likely they want to see the results how well 2 tests, and if well 3 hits gas.
Vet with very low debt, and huge cash flow will likely result in the buying back a lot of shares, and with big increases production in Germany/Croatia in 2025, that will significantly increase Cash Flow and FCF.
IMHO
MHP
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