The company called it “a year of major positive change.”
A Canadian-based international oil and gas exploration, development and production company provided investors with its financial results for the fourth quarter 2021 and for the year ending December 31st, 2021.
Canadian Overseas Petroleum Ltd. (CSE: XOP, Forum) reported on Friday that petroleum sales, net of royalties were
$5.8 million in Q4 2021, offset by a $1.4 million realized loss on crude oil hedge contracts as compared to $5.2 million offset by a $0.6 million realized loss on crude oil hedge contracts in the third quarter of 2021.
Q4 highlights:
- Realized a gain of $1.6 million on butane hedge contracts as compared to a gain of $1.1 million in the third quarter of 2021, with respect to the miscible flood injection program
- The operating netback was $43.97/bbl, which included a $2.76/bbl net realized gain on crude oil and butane commodities contracts as compared to $26.85/bbl, which included a $4.31/bbl realized loss on crude oil and butane commodities contracts in the third quarter of 2021
At the start of the financial year the company had completed the acquisition of Atomic Oil & Gas which has been transformative for the company. XOP now operates three assets in the Powder River Basin in Wyoming which have a 40-plus year reserve life and inclining oil production from gas miscible flood, with facilities built and commissioned in 2019.
2021 Financial Highlights:
- Net crude oil sales before royalties averaged 972 bbls/d which has been limited due to facility constraints
- Petroleum sales, net of royalties were $15.0 million offset by a $2.3 million realized loss on crude oil hedge contracts
- Realized a gain of $2.8 million on butane hedge contracts with respect to the miscible flood injection program
- The operating netback was $33.10/bbl, which included a $1.92/bbl net realized gain on crude oil and butane commodities contracts
As the company looks to optimize and increase oil production at the operated Barron Flats Shannon Unit miscible flood and commence Phase 1 of the delineation of the Barron Flats Deep Oil discovery, the company also moves to develop a
significant conventional light oil discovery at its Wyoming asset.