The Canadian Overseas Petroleum Limited (LON: COPL) share price fell 8.09% after its Q2 and H1 2023 financial results were released. The company reported net petroleum sales of $5.6 million in Q2 2023 compared to $5.2 million in Q1 2023.
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The company attributed its higher petroleum sales to increased oil production, which allowed it to net higher revenues despite a slight decline in the overall sale price of each barrel of oil from $74.94/bbl in Q1 2023 to $71.75/bbl in Q2 2023.
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COPL also revealed that it had profited from a realised hedging gain of $0.1 million on butane hedge contracts compared to $0.5 million in the first quarter of 2023. The Company had no crude oil hedge swap contracts in place in the first half of 2023 due to a hedge restructuring in December 2022.
The company noted that it had begun upgrading its gas gathering system in Q2 2023 to debottleneck restrictions at specific well locations to recover produced gas back to the gas plant and reduce gas flaring. The gas gathering system is now functioning and was commissioned on time and under budget in July 2023.
COPL reported an operating netback of $20.93/bbl, without including the realised gains on the butane hedge contracts, compared to $17.19/bbl in Q1 2023. The increase in netback was driven mainly by the $6.98/bbl reduction in operating expenses in Q2 2023. However, the decline was partially offset by decreased crude oil sales prices.
The company revealed that it had made several cuts in its general and administrative (G&A) expenses, lowering its operating costs to $1.9 million in Q1 2023 from $2.3 million in Q2 2023. COPL intends to cut its operating costs further in Q3 and Q4 2023.
The oil and gas firm had $5.2 million in cash as of June 30, 2023, versus $4.0 million as of December 31, 2022.
The Canadian Overseas (COPL) share price.
The COPL share price edged 8.09% lower to trade at 3.75p, from Monday’s closing price of 4.08p.
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