Global Demand for Tight Gas is Creating a $70 Billion Opportunity
Growing demand for energy has led to a significant surge in the exploration and production of unconventional gas, including tight gas. In Europe, for example, the European Commission wants to end Europe’s reliance on Russian energy, with plans to ban all Russia gas and liquefied natural gas to EU member states by the end of 2027.
To help, and in an effort to support Hungary’s energy security, CanCambria Energy Corp. (TSXV: CCEC) signed a concession contract for the Kiskunhalas Concession Area with the Hungarian Ministry of Energy. What makes the Kiskunhalas Concession Area so attractive is its location in the Pannonian Basin of Hungary, which is considered to be a historically production region.
In addition, according to CanCambria Energy Corp., “The Pannonian Basin in southern Hungary is an area of great potential for the development of large-scale, deep tight gas sandstone reservoirs. Many shallow oil and gas fields define this proven, mature petroleum province, although the deeper basin fills (>2,500 m) have, until now, attracted little attention.”
“With supply under threat, the existing pipeline infrastructure, with readily available takeaway and storage capacity throughout the region, now supports the exploration, appraisal, and development of this natural resource.”
Other than CanCambria, some of the other companies to keep an eye on include BP (NYSE: BP), Chevron (NYSE: CVX), Exxon Mobil (NYSE: XOM), and Marathon Petroleum (NYSE: MPC).
CanCambria Energy (TSXV: CCEC) Signed Concession Contract for Kiskunhalas Concession Area
CanCambria Energy Corp. (TSXV: CCEC) just announced that it has signed the concession contract for the Kiskunhalas Concession Area with the Hungarian Ministry of Energy.
Under the terms of the contract, CanCambria will remit the applicable concession fee within 30 days of the effective date. The signing formally initiates a four-year exploration period.
Dr. Paul Clarke, CEO of CanCambria, stated: “We are very pleased to have signed this contract and look forward to completing the remaining steps, and closing in the next month. Our team has already begun the integration and interpretation of data from this significant concession area. We believe the project has the potential to support a multi-year drilling portfolio, guided by our team’s technical expertise, disciplined approach and strong focus on identifying impactful opportunities.”
Technical Summary
The 945.9 km2 concession area includes both unconventional and conventional potential, with a range of existing supporting technical data under license to the company. A highly experienced, integrated subsurface team—including geologists, geophysicists, and petrophysicists—is engaged on this project, which is anticipated to last several months.
The highly prospective, gas-charged fault block associated with the company’s flagship Kiskunhalas Trough asset extends southwest into the KCA. CanCambria has licensed high-quality 2011 vintage 3D seismic over the area and is preparing to reprocess and merge with new proprietary 3D data volumes. Once the prospective area is fully interpreted, a resource assessment will be conducted to support the addition of new well locations to the field development plan (FDP). Initial assessments indicate the seismic amplitude features, indicative of gas-charged reservoirs, are present in the KCA over 25% of the KCA in the south.
Covering 30% of the KCA to the north exists a large, deep Miocene-age basin named the Soltvadkert Trough, which is analogous in many respects to the petroleum play elements in the Kiskunhalas Trough. The area has no existing deep drilling and is largely unexplored, covered only by old 2D seismic. This basin adds several new exploration targets to the portfolio, with the potential to hold several undiscovered hydrocarbon accumulations of potential scale. The Company is currently in discussions with seismic firms to scope the extent of a potential new 3D survey that would image the basin and support the characterization and de-risking process. The CanCambria model of applying new technology is key to unlocking this area.
Additionally, the Company can confirm an assessment of the shallow conventional oil and gas potential across the greater concession area—using standard prospect generation and geologic chance-of-success methods—is underway. Numerous oil and gas accumulations have been discovered in the general area over the last several decades and the Company hopes to have an assessment of these opportunities (in terms of size and risk) by year-end.
CanCambria will update the market as plans for the above become available.
Other related developments from around the markets include:
BP’s CEO Murray Auchincloss just noted, “In February, we announced a fundamental reset of our strategy - to grow the upstream, focus the downstream and invest with discipline in the transition - and we have already made significant progress. So far this year we have started up three major projects, made six exploration discoveries and have progressed our divestment programme - all while delivering strong operational performance, with over 95% upstream plant reliability supporting the best operating efficiency on record, and over 96% refining availability. We continue to monitor market volatility and changes and remain focused on moving at pace. I’m confident that our plans to strengthen the balance sheet, reduce costs, and improve cash flow and returns will grow long-term shareholder value and strengthen the resilience of bp.”
Chevron reported earnings of $3.5 billion ($2.00 per share - diluted) for first quarter 2025, compared with $5.5 billion ($2.97 per share - diluted) in first quarter 2024. Included in the quarter was a net loss of $175 million related to legal reserves and a tax charge due to changes in the energy profits levy in the United Kingdom that were partially offset by the fair value measurement of Hess Corporation shares. Foreign currency effects decreased earnings by $138 million. Adjusted earnings of $3.8 billion ($2.18 per share - diluted) in first quarter 2025 compared to adjusted earnings of $5.4 billion ($2.93 per share - diluted) in first quarter 2024.
Exxon Mobil announced first-quarter 2025 earnings of $7.7 billion, or $1.76 per share assuming dilution. Cash flow from operating activities was $13.0 billion and free cash flow was $8.8 billion. Shareholder distributions of $9.1 billion included $4.3 billion of dividends and $4.8 billion of share repurchases, consistent with the company's announced plans. “In this uncertain market, our shareholders can be confident in knowing that we're built for this. The work we've done to transform our company over the past eight years positions us to excel in any environment,” said Darren Woods, chairman and chief executive officer.
Marathon Petroleum reported net loss attributable to MPC of $(74) million, or $(0.24) per diluted share, for the first quarter of 2025, compared with net income attributable to MPC of $937 million, or $2.58 per diluted share, for the first quarter of 2024. The first quarter of 2025 adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) was $2.0 billion, compared with $3.3 billion for the first quarter of 2024. "Our first quarter results reflect the safe and successful execution of the second largest planned maintenance quarter in our company's history and strong commercial performance," said President and Chief Executive Officer Maryann Mannen. "Our Midstream business delivered an 8% increase in segment adjusted EBITDA over the prior year, and executed on our Natural Gas and NGL growth strategies. For our refining business, we are positioned to meet summer demand as seasonal trends are expected to improve margins and we remain constructive on its long-term outlook. We believe we are positioned over time to deliver peer-leading capital returns."
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for CanCambria Energy Corp by CanCambria Energy Corp. We own ZERO shares of CanCambria Energy Corp. Please click here for full disclaimer.
Contact Information:
Ty Hoffer
Winning Media
281.804.7972
[email protected]
