Premium European natural gas prices, Montney Shale drilling and a Saskatchewan asset sale supported a 34% jump in profits during the first quarter for Canada producer Vermilion Energy Inc.

Vermillion Energy

The Calgary-based explorer, which reports in Canadian dollars (C$1.00/73 cents), reported elevated prices for Dutch, German, French and Irish production, high enough to offset deeper cuts in Canada and the United States.

Total natural gas output was 247.6 MMcf/d in the first quarter, versus output of 244.7 MMcf/d. Total oil output declined to 33,291 b/d from 37,090 b/d, while natural gas liquids slipped to 7,896 b/d from 8,342 b/d.

Realized natural gas prices averaged $10.77/Mcf, more than triple the $3.22 average for Canadian sales alone on the crowded AECO market. Oil and liquids also...