February 24: Vero Energy
Posted: Tue Jan 31, 2012 9:08 pm
Vero Energy (VRO.TO) will be hosting our luncheon at The Hess Club in Houston on Friday, February 24.
EPG Premium Members should check out our recent profile on the company that can be found under the Watch List Tab.
Vero Energy Inc. (VRO.TO) hosted a luncheon for us last summer. I
was very impressed by company management and felt they had
significant upside in their Cardium drilling program. This is the same
play where PetroBakken (PBN.TO) is having outstanding results.
On January 3rd Vero announced an asset sale that I believe will
reposition the company for steady double digit growth. Closing of
the transaction is expected to occur on or about January 31, 2012.
Vero Energy is selling most of their gas producing properties and turning their focus to increasing their liquids production. I like this strategy since I remain bullish on oil prices but very bearish on North American natural gas due to the glut of gas production we now have in this country. I now believe that natural gas prices will remain depressed for at least two years.
The properties being sold are primarily focused in the deep basin region of West Central Alberta and include related facilities but excludes zones from surface to the base of the Cardium. The properties being sold represent estimated average daily production of 7,296 boe/d (86% Natural Gas) during the fourth quarter of 2011 and 26.5 mmboe of Vero’s proved plus probable reserves at December 31, 2010.
EPG Premium Members should check out our recent profile on the company that can be found under the Watch List Tab.
Vero Energy Inc. (VRO.TO) hosted a luncheon for us last summer. I
was very impressed by company management and felt they had
significant upside in their Cardium drilling program. This is the same
play where PetroBakken (PBN.TO) is having outstanding results.
On January 3rd Vero announced an asset sale that I believe will
reposition the company for steady double digit growth. Closing of
the transaction is expected to occur on or about January 31, 2012.
Vero Energy is selling most of their gas producing properties and turning their focus to increasing their liquids production. I like this strategy since I remain bullish on oil prices but very bearish on North American natural gas due to the glut of gas production we now have in this country. I now believe that natural gas prices will remain depressed for at least two years.
The properties being sold are primarily focused in the deep basin region of West Central Alberta and include related facilities but excludes zones from surface to the base of the Cardium. The properties being sold represent estimated average daily production of 7,296 boe/d (86% Natural Gas) during the fourth quarter of 2011 and 26.5 mmboe of Vero’s proved plus probable reserves at December 31, 2010.