Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP) posted flat revenues in its latest quarter as weaker crude prices offset an increase in production following the acquisition of assets from bust partner Cuda Energy.
Net average crude oil sales before royalties averaged 1,107 barrels daily (bbls/d) against 961 bbls/d in the second quarter of 2022, though this would have been higher without operational interruptions at some high-impact wells.
These were a consequence of the miscible flood program, it said, which involves the injection of high-pressure solvent that both raises the reservoir pressure and mobilizes the oil in place.
Petroleum sales, net of royalties were US$7.1mln in the three months to end-September 2022, unchanged from the previous three months.
Net hedging losses were US$2.3mln comprising US$3.4mln on crude oil hedge contracts, which was down from a second-quarter loss of US$4.7mln, offset by a gain of US$1.1mln on butane hedge contracts.
The operating netback was $38.26/bbl before the net realized gain on crude oil and butane commodities contracts compared to $55.72/bbl in the second quarter of 2022, with the reduction attributed to lower prices for WTI crude.
Cash holdings were US$5.7mln on September 30, 2022.