Zargon Oil & Gas Ltd. Reports Earnings and Operating Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Production Guidance for the Fourth Quarter and Full Year of 2017
For the nine months period, the company reported gross petroleum and natural gas sales of $28.37 million compared to $35.47 million a year ago. Funds flow from operating activities were $4.40 million or $0.14 per basic share compared to $2.66 million or $0.09 per basic share a year ago. Cash flows from operating activities were $2.19 million compared to $6.44 million a year ago. Net losses were $5.76 million or $0.19 per basic share compared to $2.36 million or $0.08 per basic share a year ago. Net capital expenditures were $6.41 million. Net debt as at September 30, 2017 was $36.70 million compared to $32.99 million a year ago.
For the quarter, oil and liquids production averaged 2,037 barrels per day compared to 2,915 barrels per day a year ago. Natural gas production averaged was 3.55 million cubic feet per day compared to 3.39 million cubic feet per day a year ago. Equivalent was 2,628 barrels of oil equivalent per day compared to 3,480 barrels of oil equivalent per day a year ago.
For the nine months, oil and liquids production averaged 1,991 barrels per day compared to 3,275 barrels per day a year ago. Natural gas production averaged was 3.47 million cubic feet per day compared to 3.67 million cubic feet per day a year ago. Equivalent was 2,569 barrels of oil equivalent per day compared to 3,887 barrels of oil equivalent per day a year ago.
The company provides 2017 annual guidance levels of 2,500 barrels of oil equivalent per day. The 2017 production guidance levels have been consistently exceeded by virtue of a $8.30 million (projected) 2017 capital program focused on waterflood implementation and optimizations plus well reactivations /recompletions.
Fourth quarter 2017 production volumes are expects to average 2,550 barrels of oil equivalent per day.