14th Aug 2014 09:56
LONDON (Alliance News) - Caza Oil & Gas Inc shares were boosted Thursday, as the group swung to profit in the second quarter on the back of a big rise in revenue from oil and natural gas sales and higher production volumes in the period.
The firm said adjusted earnings before interest, taxation, depreciation and amortisation were up to USD3.3 million in the three months to June 30, against a USD824,891 loss in the same period last year.
That was driven by a near-sixfold rise in revenue from oil and natural gas sales in the second quarter to USD6.3 million from USD1.1 million last year. That was also a 65% rise on the USD2.1 million in revenue generated in the first quarter of 2014.
Oil and natural gas liquids production for the firm was up nearly five-fold to 65,823 barrels, against 11,059 barrels in the same period last year. That figure is also up 47% on the 44,724 barrels produced in the first quarter. The average oil price achieved by the firm in the second quarter was up 8% to USD92.89 per barrel, against USD85.92 last year. The average natural gas price was up 20% to USD4.47 per thousand cubic feet.
Caza Chief Executive W Michael Ford said the increases in EBITDA and revenue in the second quarter, along with its recent equity fundraising, allowed the firm to target additional leasing in the Bone Spring project in the US state of New Mexico and allowed it to retire debt owned to Yorkville.
Caza shares were up 5.6% to 19.14 pence on Thursday, putting it among the biggest risers on the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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