OTCPK:STOSF - Post by User
Post by
retiredcfon Aug 14, 2012 8:03am
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Post# 20214005
Q2 Results
Q2 Results Look to be pretty reasonable and they are maintaining their YE production guidance of 4300-4500 boe/d (84% oil and NGL). Balance sheet is also strong. GLTA
The second quarter of 2012 represented an important milestone for Spartan in that it marked the Company's first full year of operations. During that year, Spartan has grown from a company with a small production base characterized by high operating costs into a high growth company with some of the lowest operating costs in its peer group.
All of this growth has been achieved through the drill bit. From June, 2011 to June, 2012, the Company has drilled 34 (30.6 net) horizontal wells and participated in an additional 4 (1.0 net) horizontal wells targeting Cardium light oil at Spartan's Keystone property with a 100% success rate. During this period, Spartan has increased production by 358% and production per share has increased by 177%.
Highlights for the second quarter include:
- Drilled 11 (10.7 net) wells in Spartan's Keystone core area, with a 100% success rate. All of these wells are expected to come on production in the third quarter of 2012.
- Achieved record quarterly cash flow from operations of $12.1 million, an increase of 17% from $10.3 million in the first quarter of 2012 and an increase of 48% from $8.2 million in the fourth quarter of 2011.
- Increased production by 45% to 2,750 boe per day (83% oil and liquids) from an average of 1,903 boe per day in the first quarter of 2012.
- Achieved net earnings of $4.6 million; Spartan's fourth consecutive quarter of positive earnings.
- Reduced operating costs (including transportation) by 15% to $8.32 per boe in the second quarter 2012, as compared to $9.83 per boe in the first quarter of 2012.