Canadian Spartan Delta Takes Q3 Loss
Canadian producer Spartan Delta said November 5 it had a net loss of C$7.3mn (US$5.6mn) in Q3 2020, its first full operational quarter since its “transformational” acquisition of gas-weighted producer Bellatrix Exploration in June 2020 for C$108.8mn.
Free funds flow in the quarter was C$13.2mn, Spartan Delta said, “highlighting the robust economics of the company’s operations under current Aeco pricing and lower baseline operating expenses.” Operating expenses were cut 12% quarter-over-quarter.
Natural gas production averaged 108.2mn ft3/day in Q3 2020, up sharply from the pre-Bellatrix level of 1.04mn ft3/day, when Spartan Delta operated as Return Energy. And its average realised price for gas also rose sharply, to C$2.30/’000 ft3 from C$0.63/’000 ft3 in 2Q 2019, when pipeline curtailments in western Canada pushed benchmark Aeco prices lower, and at times into negative territory.