Canacol Energy Ltd. Reports an 8% Increase in Realized Gas Sales and a 10% Increase in EBITDAX for Q2 2019.
ENPNewswire-August 9, 2019--Canacol Energy Ltd. Reports an 8% Increase in Realized Gas Sales and a 10% Increase in EBITDAX for Q2 2019
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Release date- 08082019 - Canacol Energy Ltd. ('Canacol' or the 'Corporation') (TSX: CNE; OTCQX: CNNEF; BVC: CNEC) is pleased to report its financial and operating results for the three and six months ended June 30, 2019.
Dollar amounts are expressed in United States dollars, except as otherwise noted.
Charle Gamba, President and CEO of the Corporation, commented: 'The second quarter saw an increase in natural gas production of 9% for the three months ended and 13% for the six months ended, compared to the same periods in 2018, as well as significant exploration discoveries with the Acordeon-1 and Ocarina-1 wells. As we recently announced, we also saw the completion of works on the Jobo to Cartagena pipeline expansion, which will lift gas sales to 215 MMscfpd in August. For the remainder of the year, we shall focus on: 1) the execution of our remaining exploration and appraisal drilling program in order to increase our gas reserves base and 2) the execution of new natural gas sales and pipeline construction contracts in order to deliver 100 MMscfpd of natural gas sales to Medellin in late 2022.'
Highlights for the three and six months ended June 30, 2019
Financial and operational highlights of the Corporation include: Realized contractual natural gas sales increased 8% and 11% to 120.5 MMscfpd and 121.3 MMscfpd for the three and six months ended June 30, 2019, respectively, compared to 111.9 MMscfpd and 109.1 MMscfpd for the same periods in 2018, respectively. Average natural gas production volumes increased 9% and 13% to 121.5 MMscfpd and 122.4 MMscfpd for the three and six months ended June 30, 2019, respectively, compared to 111.4 MMscfpd and 108.4 MMscfpd for the same periods in 2018, respectively.
Total natural gas revenue, net of royalties and transportation expenses for the three and six months ended June 30, 2019, increased 8% and 15% to $45.7 million and $93.1 million, respectively, compared to $42.4 million and $81.1 million for same periods in 2018, respectively, mainly attributable to the increase of natural gas production.
The Corporation realized an EBITDAX of $37 million and $76.8 million for the three and six months ended June 30, 2019, respectively, compared to $33.6 million and $67.2 million for the same periods in 2018, respectively.
The Corporation recorded net income of $1.9 million and $8.2 million for the three and six months ended June 30, 2019, respectively, compared to net losses of $26 million and $17.7 million for the same periods in 2018.
The Corporation's natural gas operating netback increased 2% and 5% to $3.88 per Mcf and $3.96 per Mcf in the three and six months ended June 30, 2019, respectively, compared...
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