US Greenfields Sees Losses Widen In Q2
Azerbaijan-focused junior Greenfields Petroleum has posted a widened loss for the second quarter, as a result of lower production and weaker oil prices.
Its net loss for the three-month period came to $2mn, compared with $0.9mn a year earlier, the US company reported on August 26. Ebitda fell by 13.5% yr/yr to $2.48mn, as revenues slumped 11% to $8.08mn.
Greenfields operates Bahar and Gum Deniz, a pair of mature Soviet-era oil and gas fields in the Caspian Sea. The drop in earnings came as oil sales fell 9% yr/yr to 686 b/day in the quarter, while gas sales decreased by 6% to 17.228mn ft3/day.
Compared with January through March, however, Greenfields noted that gross oil output at Gum Deniz was up 22% at 813 b/day, while gas extraction at Bahar climbed by 11% to 20.596mn ft3/day.
“We continue to build momentum in improving our operating performance in the second quarter and remain focused on realising the core value attributable to our operations and substantial proven reserves,” CEO John Harkins said. “Production during the quarter showed a positive growth trend compared to the first quarter and we have a clear growth strategy to materially enhance that trend our future periods.”
Greenfields development plans involve continued well workovers and recompletions, water injection to boost recovery and drilling into deeper reservoirs.
The price at which Greenfields sold its oil also declined by 9% yr/yr to $60.80/b. Its gas price has been fixed at $2.69/’000 m3 since April 2017, under a sales contract with Azerbaijan’s Socar. Its operating costs were up 3% yr/yr at $5.03mn in the second quarter, although this was more than offset by a 36% decline in capital expenditure to $1mn.