Canada’s Advantage O&G Reduces Q3 Loss
Advantage Oil & Gas, a Calgary-based and gas-weighted intermediate producer, reported a Q3 2020 net loss of C$21.6mn (US$$16.2mn) on October 30, a modest improvement over the C$27mn loss reported in Q3 2019.
Production, operating costs and adjusted funds flow all met or exceeded expectations, it said, despite the “volatile macroeconomic environment.”
Natural gas production in the quarter averaged 238mn ft3/d, up 2% from the year-ago period, and reflected the low decline rate of its mainly Montney liquids-rich assets. During the quarter, only one well, at Glacier, was placed on production. Total liquids production averaged a record 4,729 b/d, up from 3,142 b/d a year ago.
Net debt was reduced by 30% – or about C$107mn – with the sale of a 12.5% interest in its 400mn ft3/d Glacier gas plant.
For the balance of this year, additional capital has been allocated to the Glacier property, with a 10-well program planned for the second half. Five of those wells were drilled and rig released in the third quarter, while the other five will be drilled in the fourth quarter, when a total of six completions are planned. The remaining four wells will be completed in Q1 2021.
In 2021, about 75% of the capital budget will be spent on Glacier gas-weighted development, Advantage said, recognising an improved commodity outlook for natural gas in western Canada.