Vermilion Energy Inc T.VET

45.55 EURO TTF Gas - Dec 10

[MyHoneyPot]

Dutch TTF Natural Gas Futures - Jan 25 (TFAc1)

TTF Gas is 45.55 Euro's * .293 = 13.34 Euro's * 1.4884 = $19.85 Canadian/mcf


Vermillion has been making great strides in Europe with respect to Gas. 

1. Vermilion the largest provider of domestic natural gas in Ireland.
2. Vermillion is the second largest operation in Netherlands. 
3. Vermillion now has a gas plant in Croatia (15 MMcf) and a partner SA-07 block. 
4. Vermillion has 3 deep gas wells drilled in Germany, one well with 100 BCF of potential reserves (2 Billion in resource) with one other well awaiting testing, and one other well finishing drilling. 

Vermillion has made great strides in Europe at the right end of LNG, and is waiting on several packages to expand their footprint futher. 

The huge cashflow Vermillion is generating is because they are at the right end of the LNG trade. 

The value of VET assets are clearly undervalued, Corrib Natural Gas Project , this asset is worth a lot all by it self. 

VET is generating significant production, FCF and FFO is a market when a lot of other companies are not so much. 

Very compelling investment opportunity.

IMHO
MHP

 

[WinstonSmith]

I agree with this analysis with one proviso...The Corrib gas field is depleting... dont know what the timeline is.. perhaps someone can enlighten me. On the plus side there may be a partial refund on the Windfall profit tax on this asset...anyone have hard news?

[RiverCartel]

Supposedly the current leases will run out in 2026/27. However they have not approved any futher licences - non proven reserves could hold another 20-30 years of gas. This occured due to public protest, however the public might change when they start to run out of gas and their bill start increasing substantially.

[downwithdotcom1]

careful what you ask for because if europeon gas prices take off there will be easy justification for the return of WINDFALL TAXES..dwdc

[mnztr]

I believe Corrib had a 10y resource life when they acquired the extra share but it could  be extended to 2038 with more investment. 

[GregC24]

https://www.independent.ie/irish-news/energy-crisis-corrib-gas-field-operator-tells-taoiseach-micheal-martin-they-can-extract-fuel-for-another-decade/41945944.html

[MyHoneyPot]

I heard in Company discussions that Germany is a friendly to natural gas exploration. Which could drive major investment, and the market is huge for natural gas there. Hence VET drilled 3 different well in 3 independant structures.   Considering that in some of these juristictions, VET is considered a major operator is a good thing for the company.  It seems that the LNG surge