3rd Mar 2014 10:42
LONDON (Alliance News) - Edge Resources Inc Monday said it was hit by a temporary pricing issue in its third quarter and chooses to lower production during the period.
The exploration and production oil and gas company said that during the three months ended December 31, Canadian heavy oil prices touched a multi-year low dropping below CAD50 per barrel bringing its total sales during the period to CAD1.9 million from USD2.3 million in 2012.
However, the company said it was still able to generate positive cashflow during the period by reducing general and administrative costs by 37% and operating costs by 31%.
Edge Resources also said Canadian Heavy Oil prices have since returned to normal levels, which when combined with lower cost operations, is anticipated to allow the company to be more profitable going forward.
The company said production in the quarter fell to 491 barrels of oil equivalent per day from an average of 538 barrels during the previous quarter, on purpose in order to mitigate the impact of the fall in oil prices.
Edge Resources said production from four new wells drilled in December are still at an early stage but that one of these experienced a primary cementing issue which has caused excessive water production, but this problem has been dealt with.
The company said its current wellhead production is at 650 barrels of oil equivalent per day due to new production from recently-drilled wells.
Edge Resources shares were down 11.9% to 6.28 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
EDG.L