Europe’s Energy Crisis is Creating a Unique Opportunity in One of Hungary’s Most Prolific Regions

Europe is finally cutting its reliance on Russian energy…and as a result has triggered a fast-moving race to secure domestic production.

According to the European Union, all Russian gas and liquefied natural gas to European Union member states will be banned by the end of 2027.

“No more will we permit Russia to weaponize energy against us… No more will we indirectly help fill up the [Kremlin’s] war chests,” European Commissioner for Energy Dan Jorgensen said as quoted by the BBC.

And even if there is an eventual ceasefire, the ban on Russian energy will stand.

In fact, as noted by The Guardian, “The EU energy commissioner said a proposed ban on Russian gas imports would remain, irrespective of whether there was peace in Ukraine,” adding that, “Under the proposals, European companies would be banned from importing Russian gas or providing services at EU liquified natural gas terminals to Russian customers.”

That’s because Europe has grown tired of the cut offs – and Russia’s long history of using its natural gas dominance for political ends.

In 2006 and 2009, for example, Russia’s disputes with Ukraine over the terms of transit contracts led to Russian gas supply cutoffs. In 2014, Russia turned off the spigot again after complaining that Ukraine failed to pay its debts, estimated at $5.3 billion, says the BBC.

“This is a ban that we introduce because  Russia  has weaponized energy against us, because Russia has blackmailed member states in the EU, and therefore they are not a trading partner that can be trusted,” added Jorgensen, as quoted by The Guardian.

Meanwhile, the crisis is creating opportunity in one of Europe’s most promising gas fields.

CanCambria Energy’s (TSXV: CCEC); (OTCQB: CCEYF) Kiskunhalas Project in Hungary

CanCambria Energy’s flagship asset, the Kiskunhalas Project is already a well-defined gas/condensate asset in southern Hungary.

Sitting in Hungary’s prolific Pannonian Basin, which has already produced 13 billion barrels of oil equivalent – the project could become a significant contributor to the EU natural gas supply and the energy security of Hungary, added the company.

In fact, the scale of opportunity here is clear, with 760 billion cubic feet of gas and 71 million barrels of condensate, independently verified and supported by high-resolution seismic data. Even more impressive, an independent 51-101 evaluation by Chapman Engineering assigns the project a Net Present Value of roughly $1.58 billion based on a 100-well development plan.
That’s substantial news for CanCambria Energy, which has strongly positioned itself in one of Europe’s most promising natural gas fields.

With a market cap of just roughly $63.11 million CAD,  CanCambria  is also trading at a valuation well below its peers, while offering significant upside potential for investors.