13th Aug 2015 08:31
LONDON (Alliance News) - Caza Oil and Gas Inc Thursday said its pretax loss widened in the second quarter of 2015 as a fall in production and prices hampered revenue.
The US focused company reported a USD3.3 million net loss in the second quarter of 2015, widening from a USD763,150 loss a year earlier after revenue dropped to USD2.9 million from USD6.3 million as lower oil and gas prices, compounded by lower production levels, took its toll.
The company's oil and natural gas liquid production was down 20% quarter-on-quarter to 58,847 barrels from 73,643 barrels, which was also down 11% year-on-year. That brought average net production volumes to 744 barrels of oil equivalent per day, down 18% from 917 barrels in the first quarter of the year and a 21% fall from a year earlier.
The average oil price in the quarter was down 46% year-on-year to USD50.36 per barrel from USD92.89 per barrel, but this is up from the price it achieved in the first quarter of 2015.
Gas prices fell 33% year-on-year to USD2.99 per million standard cubic feet, and compared to the first quarter of 2015 this was down 2.6%.
"We are pleased overall with the performance of our producing properties. Notwithstanding the current pricing environment and the inevitable impact on both revenues and production, we retain an outstanding asset base with most of our leases either held-by-production or with sufficient term remaining until expiration to allow the company to take advantage of a realignment of operational costs to the underlying commodity pricing and/or an improvement in the commodity price itself," said Chief Executive Michael Ford.
Looking forward, the company said it would like to eventually accelerate and expand its drilling program in the Bone Spring play within the next two years, but this will depened on oil and gas prices in the future.
In terms of the financials for the first half, Caza's net loss widened to USD4.6 million from a USD2.2 million loss a year earlier as revenue tanked to USD6.3 million from USD10.9 million.
Caza shares were trading flat at 1.62 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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