Vermilion's German gas push hinges on Wisselshorst, with two more wells planned for early 2027

Vermilion Energy (TSX: VET) has two German drilling milestones ahead. In April it said it was on track to bring on production from the first Wisselshorst well "by mid-year" 2026. On July 30 it said the next two wells on the Bommelsen license would be spudded (started) in early 2027.

Why it matters

Wisselshorst is the larger of the two German gas assets in the company's valuation inputs. Vermilion holds a 64% interest, and the latest estimate (July 30, 2026) is a P50 gas reserve of 67 bcf. P50 means a median case: an even chance the actual volume is higher or lower. If that 67 bcf is for the whole field, 64% would be roughly 43 bcf attributable to Vermilion. The inputs do not say whether the figure is gross or net.

Osterheide, also in Germany, is 100% owned with a P50 reserve of 16.4 bcf. That estimate dates from May 2025, so it is older than the Wisselshorst figure. In April the company described Osterheide well production as "robust" in the first quarter.

What is uncertain

• The inputs do not confirm that the first Wisselshorst well has started producing. The mid-year target was stated in April, and no later statement in the inputs says whether it was met.
• The Bommelsen timing is a season, not a date. The window runs from January to April 2027.
• The April release gave no production rate or cost for the new wells.

Wider context

Vermilion described itself as a gas producer with assets in Canada and Europe. First-quarter 2026 production averaged about 125,000 boe/d, of which 13% was European gas. European gas sold at about $16/MMBtu on average, which the company linked to higher March prices amid Middle East developments.

Germany is also where the company is expanding. It signed to buy producing German assets of about 1,000 boe/d, expected to close in the second half of 2026. It also added three concessions that, in its words, double its German acreage to well over 1 million net acres.

The company has been focused on debt reduction. It exited the US in 2025, sold part of its Coelacanth stake, and plans to use proceeds from a Croatian block sale for debt reduction. Its quarterly dividend is $0.135 per share.

If the Wisselshorst well performs, it would add to European gas volumes, but the inputs give no basis to say by how much.