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- Calima Energy (CE1) achieves a record in quarterly production of 382,910 barrels of oil equivalent in the three months to the end of September
- The company did however report a 19 per cent drop in revenue to $30.7 million due to a fall in West Texas Intermediate and an increase in the Western Canadian Select
- Following the quarter, the Canadian-focused oil and gas company began its five-well drilling program with first production expected in the current quarter and early next year
- Calima has grown its production base over 40 per cent in the last 12 months which will be further strengthened by its current Gemini and Pisces drilling programs
- Calima shares are trading 6.9 per cent in the red at 13.5 cents at 3:01 pm AEDT
Calima Energy (CE1) has achieved a record quarterly production result of 382,910 barrels of oil equivalent (boe) for the three months to the end of September.
The record in total production marks a 10 per cent increase on the June quarter. Additionally, the company increased daily production by eight per cent quarter-on-quarter (QoQ) to an average of 4162 boe per day.
While production increased, the energy stock reported a 19 per cent QoQ decline in revenue to $30.7 million which it attributed to a fall in West Texas Intermediate (WTI) and an increase in the Western Canadian Select (WCS), translating to lower hedging losses.
This followed the oil and gas play achieving its highest-ever quarterly revenue result of $37 million in the June quarter.
Adjusted earnings before interest tax, depreciation and amortisation totalled $15.2 million for the September quarter and, post-hedging, operating cashflow came to $12.5 million.
The company continued activities at its Brooks and North Thorsby operations in Canada with the four wells at Brooks tied in and on production by the start of September and the Leo 4 well at North Thorsby now on production.
Post-quarter, the company began a five-well drilling program which includes three Gemini wells and two Pisces wells. Four of the five wells are being drilled on consolidated lands which CE1 acquired in August.
First production of the wells are expected in the current quarter and early next year.
Over the last 12 months, Calima has grown its production base by over 40 per cent and has mitigated declines by layering on new wells throughout the year.
In its effort to continue this trend, the company expects its December quarter drilling program will further strengthen the production base with peak production rates expected in the March 2023 quarter.
Due to the current “robust” commodity pricing, production rates, little debt and the related cashflow, the energy stock believes it’s well-positioned to continue increasing production rates over the course of 2023.
Calima shares were trading 6.9 per cent in the red at 13.5 cents at 3:01 pm AEDT.
