RE:Why production keeps dropping so muchThe production fluctuations are explained in the company's press release:
Production in Q2/21 averaged 15,132 boe per day, down from Q1/21 production levels of 16,582 boe per day. This decrease was primarily due to the 2,700 boe per day of production that was sold for gross proceeds of $106 million on March 25, 2021. This decrease in production has now been fully offset by the Company's successful 28 (net) well 1H/21 drilling program, which added approximately 2,675 boe per day in Q2/21 for a total "all-in" onstream cost of $35 million ($13,080 per flowing boe)
As for losing money in a high-priced environment, last year the company was forced by their bankers to hedge a substantial amount of their forward production. Had they not done so, they would have made more money in 2021. Of course, they might also have gone bankrupt if their bankers had called their loans. Sometimes you do what you gotta do.
The good news is that these hedges will start to roll off in the next two quarters and they will receive current market prices for the production they are adding.