- Australis Oil and Gas (ATS) achieves a 32 per cent increase in revenue to US$14.36 million (A$20.9 million) for the first half of CY2022
- Despite inflationary pressures causing increased spending, the company reported a 168 per cent net profit increase to US$1.12 million after a US$1.65 million loss in the prior year
- During the period, Australis acquired a 10 per cent working interest in the Painter 5H well which lies within its TMS Core asset in onshore US
- This aligns with ATS’ strategy of “safeguarding” its ownership of undeveloped areas within the asset and finding a suitable partner to advance the development of TMS
- Shares end the day 4.44 per cent higher at 4.7 cents each
Australis Oil and Gas (ATS) has reported a “solid” financial performance for the six months ending June 30, which it largely attributes to the rising oil price.
The Australia-based oil and gas company saw a 32 per cent increase in revenue to US$14.36 million (A$20.9 million) for the first half of the 2022 calendar year.
The average realised price was US$103 per barrel of oil (bbl), however, the impact of its credit facility with Macquarie Bank and hedge losses reduced this average price to US$82/bbl.
Inflationary pressures resulted in an increase in spending but the company still recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of US$3.2 million and a reduction in net debt to US$5.3 million.
Following interest and depreciation expenses, Australis increased net profits by 168 per cent to US$1.12 million after a loss of US$1.65 million.
Activities continued within the Tuscaloosa Marine Shale (TMS) project which spreads across southern Louisiana and Mississippi.
The company has approximately 83,500 net acres within the TMS Core and retains significant upside potential with 360 net future drilling locations.
Two wells were fracced in the first half with the Reece 11H No.1 well successfully drilled and completed.
The well, located in Mississippi, produced an IP24 rate (average oil production rate over 24 hours) of 1800 barrels of oil per day (bopd) and after several months, it was flowing at roughly 500 bopd.
While the Reece 11H No.1 well lies within the TMS Core, the company doesn’t have an interest in the well.
As for the other well, Painter 5H in Louisiana, Australis acquired a 10 per cent working interest in the well and the unit leases. Painter 5H was fracced and completed, achieving an IP30 (average oil production rate over 30 days) of 640 bopd.
The acquisition reportedly aligns with the company’s previously adopted strategy of “safeguarding” its ownership of undeveloped areas within the TMS Core as well as finding a suitable partner to recommence activity in the TMS.
Australis’ credit facility balance is US$14 million and was extended by 18 months which it said will provide it with financial flexibility.
The company has US$8.7 million in cash which, when combined with project revenue stream, Australis expects to service its debt obligations for the next 12 months.
ATS shares were trading 4.44 per cent higher by market close to end the day at 4.7 cents.