15th May 2015 08:22
LONDON (Alliance News) - Caza Oil and Gas Inc Friday said its first quarter net loss narrowed after a fall in revenue and increased costs were offset by a substantial gain from swap contracts that the company entered to protect itself from the fall in oil prices.
The company, operating across the US, reported a narrower net loss in the first quarter of 2015 to USD1.3 million compared to the USD1.5 million net loss reported a year earlier. Revenue fell to USD3.4 million in the quarter from USD4.6 million a year earlier as an increase production was offset by the fall in oil prices.
Although general and administrative costs decreased to USD1.1 million from USD1.4 million, depletion and depreciation costs rose to USD1.9 million from USD1.6 million and financing costs increased to USD1.7 million from USD1.6 million.
Caza booked a USD1.5 million gain on risk management contracts after it entered into swap contracts to limit exposure to declining crude oil prices, compared to a USD140,817 loss a year earlier.
Combined oil and gas production, or overall production, rose 34% to 917 barrels of oil equivalent per day from 685 barrels per day a year earlier.
Caza's oil and natural gas liquids production increased 65% to 73,643 barrels from 44,724 a year earlier. Production was also up 0.5% quarter on quarter. However, natural gas production decreased 48% year on year to 53.1 million cubic feet from 101.7 million.
The average oil price in the period fell 56% year on year to USD40.60 per barrel from USD93.28 per barrel whilst natural gas prices fell 35% to USD3.07 per million cubic feet from USD4.69. The average combined price received by Caza decreased 45% to USD40.81 per barrel of oil equivalent from USD74.45.
Caza shares were down 17% to 3.83 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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