CALGARY, AB, Aug. 30, 2024 /CNW/ – Westgate Energy Inc. (“Westgate” or the “Company“) (TSXV: WGT), is pleased to announce the filing of its unaudited financial and operating results for the three and six months ended June 30, 2024. Selected financial and operating information should be read in conjunction with Westgate’s unaudited consolidated financial statements and related management’s discussion and analysis (“MD&A“) for the three and six months ended June 30, 2024 and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Westgate’s website at www.westgateenergy.ca.
Q2 2024 (“Q2/24”) Financial and Operational Highlights
- Quarterly Production Growth – Achieved average daily production of 193 boe/d during Q2/24, exceeding Q1/24 by more than 8%.
- Increasing Operating Netback(1) – Improved the operating netback to $22.14/boe, driven by a lower operating expense of $18.18/boe versus a Q1/24 operating expense of $23.60/boe.
- Completed Go-Public Transaction – Closed the Company’s go-public transaction on May 23, 2024, which is intended to provide broader access to capital and facilitate Westgate’s ability to complete M&A transactions.
- Raised Over $7.0 million of Equity Financing – Proceeds from additional equity financing fully fund the 2024 drilling budget and ensure a strong, debt free balance sheet.
- Significantly Higher Realized Oil Pricing – The Company improved its realized oil price at the wellhead during Q2/24 due to optimizing the marketing of Killam’s 29o API oil.
Q2/24 Financial & Operating Results Summary
|
($’s, unless otherwise stated) |
Q2-2024 |
Q1-2024 |
Q4-2024 |
Q3-2023 |
|
|
Production |
|||||
|
Oil |
bbl/d |
86 |
88 |
33 |
36 |
|
Natural gas |
mcf/d |
618 |
511 |
437 |
510 |
|
NGLs |
bbl/d |
4 |
5 |
4 |
5 |
|
Total |
boe/d(6:1) |
193 |
178 |
110 |
126 |
|
Revenue: |
|||||
|
Crude oil |
713,611 |
615,264 |
272,172 |
322,601 |
|
|
Natural gas |
43,904 |
85,644 |
81,264 |
106,044 |
|
|
NGLs |
33,642 |
29,880 |
25,844 |
31,636 |
|
|
Petroleum, natural gas and NGL sales |
791,157 |
730,788 |
379,280 |
460,281 |
|
|
Processing revenue |
3,789 |
364 |
13,404 |
– |
|
|
Total Revenue(1) |
794,946 |
731,152 |
392,686 |
460,281 |
|
|
Royalties |
(87,026) |
(71,888) |
(66,866) |
(60,554) |
|
|
Operating expenses |
(319,159) |
(382,668) |
(345,366) |
(281,235) |
|
|
Operating Income (loss)(1) |
388,761 |
276,596 |
(19,548) |
118,492 |
|
|
Expenditures on property and equipment |
(326,374) |
(593,204) |
(2,466,978) |
(93,800) |
|
|
Acquisition of property and equipment |
– |
– |
(11,683) |
– |
|
|
REALIZED PRICES(2) |
|||||
|
Crude oil |
$/bbl |
91.68 |
76.54 |
89.36 |
97.91 |
|
Natural gas |
$/mcf |
0.78 |
1.84 |
2.02 |
2.26 |
|
NGLs |
$/bbl |
83.17 |
68.81 |
66.31 |
70.29 |
|
Realized Prices |
$/boe |
45.06 |
45.06 |
37.43 |
39.82 |
|
Processing revenue |
$/boe |
0.22 |
0.02 |
1.32 |
– |
|
Royalties |
$/boe |
(4.96) |
(4.43) |
(6.60) |
(5.24) |
|
Royalties as a percentage of revenue(2) |
% |
11 % |
10 % |
18 % |
13 % |
|
Operating expenses |
$/boe |
(18.18) |
(23.60) |
(34.08) |
(24.33) |
|
Operating Netback(1) |
$/boe |
22.14 |
17.05 |
(1.93) |
10.25 |
|
(1) Non-GAAP financial measure. Refer to the “Non-GAAP Measures” section within this MD&A for additional information on non-GAAP financial measures. (2) Supplementary financial measure, Refer to the “Supplementary Measures” section within this MD&A for additional information. |
|||||
Operations Update
As previously communicated, the Company drilled two horizontal multi-lateral oil wells in July. These wells are now both on production and recovering load fluid. The Company expects to be in a position to provide a production update by the end of September.
Westgate’s Differentiated Strategy
Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan. This fairway is characterized by known accumulations of medium and heavy oil which are being ‘unlocked’ via the application of innovative drilling techniques that utilize multi-lateral horizontal drilling. Applying these multi-lateral drilling techniques has yielded some of the strongest oil well economics across Western Canada. The management team and board of Westgate have extensive experience building and leading successful energy companies in Canada. The collective successes of the leadership group share common characteristics: a strategy of targeting high-quality oil assets with large quantities of oil-in-place, and driving growth through successful drilling as well as strategic merger and acquisition opportunities. This proven blueprint of delivering shareholder value will be foundational to Westgate’s strategy, positioning the Company as one of a select few pure-play, high-growth, publicly-traded junior oil companies focused on the Mannville Stack Fairway.
For more information, please visit www.westgateenergy.ca.
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SOURCE Westgate Energy Inc.
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