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Americas Petrogas net revenue increased to $42.4 million in 9M

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Staff writer ▼ | December 2, 2013
Americas Petrogas announced its third quarter 2013 results with 26.5 million of consolidated cash, cash equivalents and available-for-sale financial assets as of September 30, 2013.
Americas Petrogas
Americas PetrogasAmericas Petrogas announced its third quarter 2013 results with 26.5 million of consolidated cash, cash equivalents and available-for-sale financial assets as of September 30, 2013.


During the third quarter of 2013, the company continued to produce and sell oil primarily from its Medanito Sur conventional block. Sales volume averaged 2,065 bopd (net) for the third quarter of 2013 compared to 2,118 bopd (net) during the third quarter of 2012 and compared to 2,398 bopd (net) in the second quarter of 2013.

The average gross production was lower due to natural decline and the fact that the company did not drill any conventional wells during the third quarter of 2013.

However, as a result of recent optimization studies, supported by the updated reserve numbers (41% increase in proved plus probable light oil reserves and 42% increase in proved plus probable before-tax net present value, discounted at 10%), the company decided to expand its conventional program by drilling a total of seven (7) wells, beginning in October and ending in late November 2013. Four of the seven wells are already on production while the others remain to be completed and tied-in.

For the nine months ended September 30, 2013, net revenue increased by $11.9 million to $42.4 million, an increase of 39% compared to same period of 2012. Net revenue for the three months ended September 30, 2013 was $13.2 million, which is relatively consistent with that for the same period of 2012.

For the nine months ended September 30, 2013, operating netback (excluding Oil Plus benefits) was $27.2 million ($43.49 per barrel) and operating netback (including Oil Plus benefits) was $44.1 million ($70.65 per barrel).

Oil plus benefits of $17.0 million, relating to production increases in past years, were credited to production costs during the nine months ended September 30, 2013. For the third quarter of 2013, operating netback (excluding Oil Plus benefits) was $7.1 million ($37.27 per barrel) and operating netback (including Oil Plus benefits) was $11.4 million ($60.10 per barrel). Oil Plus benefits of $4.3 million, relating to production increases in past years, were credited to production costs during the third quarter of 2013.

Funds flow from operations: $32.9 million during the nine months ended September 30, 2013, compared to $10.1 million for the equivalent period of 2012, representing an increase of $22.9 million or 227%. Funds flow from operations was $8.1 million during the three months ended September 30, 2013, compared to $4.6 million for the equivalent period of 2012, representing an increase of $3.4 million or 74%.


 

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