Q2 info out Second Quarter 2012 Highlights
- Generated net earnings of $4.1 million (
.08 per share) in the quarter. - Completed the first full quarter under the transformed oil entity. Achieved a quarterly average of over 2,341 boe/d (68% weighting to liquids production) which represents a 68% increase in production of the retained assets over the comparative quarter in 2011.
- Top quartile operating costs of $8.71 per boe and average realized prices of $56.72 per boe contributed to a $38.63 per boe operating netback.
- Achieved funds flow from operations of $6.9 million, equating to
.14 per share (basic and diluted). - Company spent $5.5 million drilling 1(0.3 net) wells in the quarter resulting in debt to annualized cash flow of 0.8 times.
Third Quarter 2012 Highlights and Update
- Brought 2 (1.3 net) horizontal wells on production in July.
- Drilled 3 (2.4 net) horizontal wells, with 4 (2.8 net) wells to be brought on in August.
- Estimate 2 (1.4 net) wells left to be drilled and brought on production in the quarter.
In July VRO drilled 2 (1.3 net) horizontal Cardium wells, of which both are operated by Vero, and have been brought on continuous production, the first on July 9th and the second on July 21st. The two wells have been consistent with the Company's recent results. The first well initially flowed at 736 boe/d (62% liquids) and after 28 days is still producing at 467 boe/d (60% liquids). The second well is currently producing at 249 boe/d (78% liquids) after two weeks. The momentum on adding production over the next month is going to be building as 3 (1.8 net) horizontal wells have been fracture completed and are currently at various stages of final completion. Vero is currently running production equipment and plans to bring these wells on production in the next week. Another 100% well is scheduled to be completed within the next week and 2 (1.4 net) operated horizontal are anticipated to will be finished drilling in August and be completed shortly thereafter.
Based on field estimates, Vero averaged over 2,350 (68% liquids) boe/d for the first week in August with a significant number of wells expected to be brought on and added to that production shortly.
Looks like the Q2 doldrums are behind us, and we will can look forward to steady production growth month after month through to next break up in Q2 2013, with steady share price appreciation.