Challenger Energy Group Announces Q1 2022 Update

Source: 4/27/2022, Location: South America

Challenger Energy (CEG), the Caribbean and Atlantic-margin focused oil and gas company, with oil production, appraisal, development and exploration assets across the region, provides the following update on its Trinidad and Tobago business unit's operating results for Q1 2022:

- Total gross oil production for Q1 2022 was 32,183 barrels, representing an average daily production rate of approximately 358 barrels. The gross production rate of approximately 400 bopd at the end of Q1 2022 has sustained consistently into April 2022. This current level of production is approximately 12% higher than the overall daily average for Q1 2022.

The increase in average daily gross production is principally because of the successful recompletion work undertaken in March and April 2022 as communicated in the Company's previous announcement dated 20 April 2022. Additional near-term production enhancement activities are being planned for the coming months, with the objective of further increasing production by up-to an additional 10%.

- Total oil sales in Q1 2022 amounted to 29,727 barrels with a gross realised average price per sold barrel of US$83.37. It is noted that the realised gross average price per barrel sold in March 2022 was US$97.13, approximately 17% higher than the quarterly average, reflecting the rise in global oil prices seen through the quarter. The prices realised by the Company are at an approximately 10% discount to the quoted WTI prices. The Company does not currently use any hedging instruments in relation to its oil sales so is making full gain of the current pricing regime.

- Revenue received by the Company from oil sales (being gross revenues less Government royalties and mandatory source deductions and adjustments applicable under the relevant licences)1, amounted to approximately US$1.17 million in Q1 2022 and represents average net revenue to the company of US$39.29 per barrel sold. It is noted that average net revenue for the month of March was US$46.20 per barrel sold, approximately 17% higher than the quarterly average and, again, reflecting the increase in global oil prices seen through the quarter that continue to be sustained.

- In total, the Company's operations in Trinidad and Tobago generated an (unaudited) pre-tax operating cash surplus in Q1 2022 of approximately US$0.2 million. This surplus is stated after field operating costs, in-country G&A and other Trinidad expenses, but before corporation and other taxes (including supplemental petroleum tax, where applicable). It is noted however that, given large carry-forward tax losses in Trinidad and Tobago, the Company is currently largely shielded from corporation taxes.

- The improved operating and financial performance of the Company's Trinidad and Tobago operations during Q1 2022 was achieved despite a number of material disruptions to operations and production caused by grid power supply issues. This included an extended nationwide grid outage in February 2022 that caused production facilities and well pumps to go offline for an extended time.

To mitigate against potential recurrences, the Company is upgrading in-field power infrastructure including installation of a new transformer and several generator-sets in the Company's primary producing fields. In addition, other planned facilities and infrastructure upgrade works continue, so as to improve day-to-day production integrity and operational resilience. The objective of this work is to protect and maximise the Company's cash generating capacity.

Eytan Uliel, Chief Executive Officer of Challenger Energy, said:

"During the first quarter of 2022 our Trinidad and Tobago operations generated a cash operating surplus, based on production that averaged around 360 bopd, and realised oil prices across the quarter averaging approximately US$83 per barrel.

This encouraging first quarter result reflects a renewed focus on routine operations, stringent cost control, and the committed efforts of everyone in the Challenger Energy team. I'd also note that both average production and realised prices achieved in the first quarter of 2022 are considerably below the levels we are seeing as we start the second quarter, where the Company is benefitting from continued strong oil prices globally and higher production. The increased and more stable base line production we are currently enjoying has been gained through a targeted work programme aimed at production enhancement, made possible due to the successful completion of our restructuring and recapitalisation in March 2022.

We have more production accretive work being planned for the coming quarters and I look forward to reporting on further improvements as the year progresses".

Colombia >>  8/8/2022 - - Average Total Production of 30,607 BOPD, Highest since Fourth Quarter 2019
- Total Average Production Up 4% from First Quarter 2022 and 33% fr...

Ghana >>  8/8/2022 - Kosmos Energy Ltd. announced its financial and operating results for the second quarter of 2022. For the quarter, the Company generated a net income o...

Oman >>  8/8/2022 - Masirah Oil Limited (“MOL”) would like to provide an update on the Yumna Field.

The flowline has been replaced and production in the Yum...

United States >>  8/8/2022 - Mosman Oil and Gas Limited (MSMN) the oil and gas exploration, development, and production company, announces its production for the year ended 30 Jun...

United States >>  8/4/2022 - ConocoPhillips (COP) reported second-quarter 2022 earnings of $5.1 billion, or $3.96 per share, compared with second-quarter 2021 earnings of $2.1 bil...
Gabon >>  8/3/2022 - VAALCO Energy Inc. provided an update on the South Tchibala 1HB-ST well, as well as updated full year production guidance. ...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.