11:23 AM EDT, 09/10/2024 (MT Newswires) -- Vermilion Energy ( VET ) on Tuesday said it is on track to meet third-quarter and full-year production guidance as it provided an operational update on key projects in Germany, Croatia, Canada and Australia.

The company reiterated its third-quarter production forecast of 83,000 barrels of oil equivalent per day (boe/d) to 85,000 boe/d and full-year guidance range of 83,000 boe/d to 86,000 boe/d

In Germany, the company successfully completed testing operations for its first deep gas exploration well drilled earlier this year. The well was completed in the Rotliegend zone with "very encouraging" results validating the company's initial assessment of the reservoir. Tie-in operations are progressing to bring the well on production in the first half of 2025.

Vermilion has begun drilling its second deep German exploration well in August, which will continue through the fourth quarter. It has also accelerated drilling of a third deep gas exploration well in Germany, which the company expects to spud in the fourth quarter. Results from the second and third well are expected to be released in the first half of 2025.

In Croatia, Vermilion increased production on the SA-10 block after commissioning the gas plant in late June. Current production levels now exceed 2,000 boe/d at 100% gas. On the SA-7 block, the company completed testing on the third well of its four-well program, The fourth well will be tested in the fourth quarter.

In Canada, the company brought five wells on production from the 9-21 pad on the Mica Montney asset earlier this year. The wells produced in line with Vermilion's type curve. The new battery and water infrastructure are contributing to cost savings.

In Australia, Vermilion accelerated annual turnaround activity to the third quarter, from the originally planned fourth quarter, resulting in one month of downtime. The production impact is expected to be largely offset by the deferral of a third-party facility turnaround in Canada to the fourth quarter.

Vermilion has repurchased 1.4 million shares under its normal course issuer bid in August, raising its year-to-date total share buybacks to 7.5 million shares.

The company plans to release its third-quarter results on Nov. 6 after the close of North American markets.

National Bank of Canada maintained its outperform rating and $23.00 price target on the company's shares following the news.

The company's shares were last seen down $0.25 to $12.00 on the Toronto Stock Exchange.

Price: 11.99, Change: -0.26, Percent Change: -2.12