Q3 Financials are out: My Findings and a planned Workover New Quarter Financials are out on Sedar. They use Canadian dollars (stock listed both in CAD and USD).
There was a small loss due to currency exchange rate, without it there was a small profit in Q3 (Income Statement). Oil price achieved was WTI oil calculating currency exchange rate USD to CAD.
Looks like a workover is planned this/current Quarter (Q4): ''The Cheal E-6 went offline due to downhole related issues which appear to be a wax plug. The operator is currently carrying out rod work and plans to install a new pump while the well is off line. The Cheal E-6 is scheduled to back on-line in March 2022.'' (MDA page 3)
Q3 covered all current fixed expenses so an increase in production should be seen in the bottom line. Moreover, oil prices are a lot better now. Oil price in Q3 achieved was 96.5 CAD per BOE (MDA page 4) so with todays oil prices we will see better revenues.
Production costs increased the past 9 months due to workovers (MDA page 5): "During the 2021 period production costs increased by 19%, from $1,046,042 in the 2020 period to $1,247,703 during the 2021 period reflecting the unexpected repair costs incurred due to the blockages on the Cheal-E1 and Cheal-E2 wells during the 2021 period. See “Projects Update - New Zealand”." This also means production volume was lower.
In overall I see that the 'normal' costs are going down Q3 2021 vs Q3 2020 (Income Statement Q3). Together with the workover in Q4 we should see more BOE production in the near future at higher oil prices, while the fixed costs are already covered.
Romania and NIS (MDA page 4): "Without a joint declaration of a commercial discovery it is the Company’s position that commercial development of the field cannot proceed at this time. The discussions continue between the Company and NIS and all available options are being considered." I remember a similar statement and now the oil and gas prices are in a whole new level.