12th Jun 2018 12:26
LONDON (Alliance News) - Phoenix Global Resources PLC on Tuesday said its daily oil production reduced in the first quarter following the sale of the Puesto Pozo Cercado concession in Argentina.
The oil & gas company said average production in three months ended March totalled 10,749 barrels of oil equivalent per day, down from 11,070 barrels in the comparative year ago quarter.
Production gains came from both Chachahuen and Angostura blocks in Argentina. However, these were slightly offset by modest production decline at Puesto Rojas block, also in Argentina.
In August last year, the company relinquished the Puesto Pozo Cercado concession, which resulted in the loss in production of 274 barrels per day.
Average released oil price in the period was USD59.84 per barrel with operating costs of USD17.10 per barrel of oil equivalent.
As a result, the company generated revenue of GBP47.0 million in the first quarter and earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses of USD14.4 million.
In addition, the company said it increased its holding in Vaca Muerta area, located at the Neuquen Basin in Argentina, to 90% from 27% and thus became an operator. It now plans to drill the Mata Mora concession, located within the area, in the third quarter of 2018.
The company floated on AIM in July last year and continues to review options to step up to the main market of the London Stock Exchange. However, Phoenix said it is unlikely to happen in 2018.
"Year to date we have made great progress in securing key unconventional acreage and operatorship positions giving us control over the work programmes and capital spend," said Chief Executive Anuj Sharma.
"Looking forward we have an exciting 2018 drilling campaign, focused on the appraisal of Phoenix's significant unconventional Vaca Muerta acreage at Puesto Rojas and Mata Mora, including our first horizontal wells," added Sharma.
Shares in Phoenix were trading 2.2% lower at 22.00 pence each on Tuesday.
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