This May be One of Europe’s Most Promising Natural Gas Fields

Europe is still reeling from a devastating energy supply crisis.

Ever since Russian gas exports through Ukraine to Europe ground to a halt, EU nations have been forced to turn to liquefied natural gas (LNG) on the global spot market – where prices are excessively volatile and often exorbitantly priced.

In fact, European natural gas prices recently traded at a 300% premium to U.S. prices, with prices often exceeding $15 to $17 MMBtu compared to just $2.50 to $4.00 in the U.S.

And unfortunately for Europe, that dramatic pricing isn’t likely to cool off much thanks to the ongoing Russia-Ukraine conflict, EU decarbonization mandates, declining production, and the elimination of Russian gas imports.

Plus, according to the European Union, it has no plans to return to Russian gas.

Instead, it plans to phase out fossil fuel imports from Russia by 2028.

As reported by The Guardian, “The EU energy commissioner, Dan Jørgensen, 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.”

While the crisis isn’t likely to end soon, it is creating an investment opportunity in one of Europe’s most promising natural 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.

The project sits in Hungary’s prolific Pannonian Basin, which has already produced 13 billion barrels of oil equivalent. And it could become a significant contributor to both the EU natural gas supply and the energy security of Hungary.

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.

We also have to consider that Hungary has emerged as one of the most attractive jurisdictions for natural gas development because of its infrastructure, low taxation (a 9% corporate tax rate) and urgent domestic demand.

Hungary is also a country that understands energy and also supports exploration and production through clear regulations and favorable fiscal policy.

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.