14th Nov 2014 10:29
LONDON (Alliance News) - Caza Oil and Gas Inc Friday said its revenue almost trebled in the third quarter from a year earlier, driven by production volumes from new wells brought on line during late 2013 and 2014.
Revenue during the three months to September 30 was USD7.2 million, up from USD2.6 million a year earlier, and a 15% increase from the USD6.3 million generated in the second quarter.
For the first nine months of the year, revenue was USD18.1 million, more than treble the USD4.9 million generated in the first three quarters of 2013.
Oil and natural gas liquid production almost trebled to 87,901 barrels during the third quarter, from 22,958 barrels a year earlier, a 34% increase from the second quarter when it produced 65,823 barrels.
Average net production volumes increased to 1,210 barrels of oil equivalent per day, from 397 barrels of oil equivalent per day in the third quarter of 2013.
However, the average oil price during the period was USD83.04 per barrel, a 21% decrease from the USD104.50 per barrel last year.
Caza's nautral gas production increased by 73% to 140.40 billion cubic feet from 81.19 billion cubic feet. Gas prices increased by 4% to USD3.62 per million cubic feet from the USD3.48 per million cubic feet achieved in 2013.
At the end of the quarter, the company reported a cash balance of USD7.4 million.
"Our production increases and continued success in the Bone Spring and Wolfcamp Play have allowed us more flexibility with our financial options, which should allow us to lower our cost of capital moving forward," said Chief Executive Michael Ford.
"Subject to the availability of appropriate financing and dependent upon prevailing commodity prices, the company's objective is to embark on an accelerated and expanded drilling program in the Bone Spring play over the next two years... A program of this type will require additional financing and would utilize excess operational cash flow to fund further development drilling and lease purchases beyond the initial two year period," it said in a statement.
Caza shares were down 2.7% to 14.60 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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