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Resource World - October-November 2017 - Vol 15 Issue 6

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O C T O B E R / N O V E M B E R 2 0 1 7 www.resourceworld.com 63 OIL & GAS There is still good news in energy stocks by Ellsworth Dickson BECAUSE THE OIL and gas sector may not be as robust as it used to be, it may come as a surprise to some just how well some companies are doing despite slipping share prices and positive petroleum analyst fore- casts. Here are some highlights. For example, Tourmaline Oil Corp. [TOU-TSX] posted second quarter earnings of $108.6-million (40 cents per share). Q2 2017 production of 235,540 barrels of oil equivalent per day was up 27% over Q2 2016 production of 185,812 barrels of oil equivalent per day. Q2 2017 liquids pro- duction of 36,127 barrels per day was up 60% over Q2 2016 liquids production of 22,640 barrels per day. The Calgary-based company has operations in the Western Canadian Sedimentary Basin. Then there is Peyto Exploration & Development Corp. [PEY-TSX] that reported earnings of 24 cents per share, and dividends of 33 cents per share for Q2 2017. Earnings of $40 million were generated in the quarter while dividends of $54-mil- lion were paid to shareholders. Peyto is an explorer and producer of unconventional gas in Alberta's Deep Basin. During Q2 2017, Peyto spent $48 million on drilling, $21 million on completions, $9 million on wellsite equipment and tie-ins, $17 million on facilities and major pipeline projects, and $2 million on new Crown lands and seismic, for total capital invest- ments of $98 million. How about Raging River Exploration Inc. [RRX-TSX]? The company recorded earnings of $18.59 million, 8 cents per share, in Q2 2017. Of note, this is an increase of 250% from the second quar- ter 2016. Raging River reported quarterly average production of 22,015 barrels of oil equivalent per day (91% oil), an increase of 38% over the comparable period in 2016. This represents a 35% increase in production per share from the comparable period of 2016. Raging River is focused in the Kindersley area of Saskatchewan. Painted Pony Energy Ltd. [PONY-TSX] also posted good Q2 results. The company generated net income for Q2 2017 of $13.8 million, net of non-recurring costs, com- pared with a net loss of $33.6 million in the second quarter of 2016. Painted Pony increased average daily liquids production by 179% for Q2 2017 to 2,779 barrels per day, compared with 996 bbl per day dur- ing Q2 2016. The company's operations are in the Montney formation of northeast British Columbia. On the exploration side, Tanager Energy Inc. [TAN-TSXV; MNIRF-OTCQB] recently announced a new discovery in the Stampede A #1 well, its fourth consecutive successful Yegua sandstone well drilled in Polk County, Texas in a joint venture with Paleo Oil Company, LLC. Tanager has a 75% working interest in the Stampede A #1 well. n

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