Canada’s Vermilion Energy Slips in 3Q
Canadian Vermilion Energy, with production and exploration throughout Europe, said October 31 fund flows from operations slipped 3% in 3Q 2019 on lower production volumes and weaker commodity prices.
The company registered a net loss in the period of $10.23mn (US$7.7mn), a year-over-year (YoY) improvement from the $15.1mn loss in 3Q 2018 but sequentially down sharply from a 2Q 2019 profit of just over $2mn. Fund flows from operations dipped to $216.1mn from $260.7mn YoY and $222.7mn sequentially from 2Q 2019.
Natural gas production in the third quarter was virtually unchanged from the same period last year, at 253.4mn ft3/day, but was down sequentially from 275.6mn ft3/day in 2Q 2019. Total production slipped 6% from 2Q 2019.
Production in France – mainly crude oil and liquids – increased 6% sequentially from 2Q 2019, but production in the Netherlands and Ireland – primarily natural gas – fell 17% and 12%, respectively. The Dutch decrease was attributed to a planned turnaround and unplanned compressor work, while the Irish slippage was traced to reservoir decline and planned and unplanned downtime at the Corrib gas processing facility.
Vermilion drilled one natural gas well in Croatia in the quarter, resulting in a second consecutive natural gas discovery that tested over a four-hour period at an estimated 17.2mn ft3/day. The company was also provisionally awarded a licence contiguous to its existing land position that will add about 500,000 net acres to its Croatian land inventory, bolstering Vermilion’s position – with 2.4mn net acres – as the largest onshore landholder in Croatia.
In North America, production in Canada was down 5% sequentially from 2Q 2019, while production in the US was up 12%. And production in Australia fell 17% from the previous quarter.