CALGARY, AB, Nov. 26, 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 nine months ended September 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 nine months ended September 30, 2024 and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Westgate’s website at www.westgateenergy.ca.
Financial & Operating Results Summary
|
Three Months Ended |
Nine Months Ended |
||||||
|
($’s, unless otherwise stated) |
2024 |
2023 |
2024 |
2023 |
|||
|
Production: |
|||||||
|
Oil |
bbl/d |
97 |
36 |
90 |
18 |
||
|
Natural gas |
mcf/d |
661 |
510 |
597 |
422 |
||
|
NGLs |
bbl/d |
7 |
5 |
5 |
5 |
||
|
Total |
boe(6:1) |
213 |
126 |
195 |
92 |
||
|
Revenue: |
|||||||
|
Crude Oil |
746,176 |
322,601 |
2,075,051 |
439,337 |
|||
|
Natural Gas |
14,476 |
106,044 |
144,024 |
275,372 |
|||
|
NGLs |
33,750 |
31,636 |
97,272 |
92,455 |
|||
|
Petroleum, natural gas and NGL sales |
794,402 |
460,281 |
2,316,347 |
807,164 |
|||
|
Processing income |
3,783 |
– |
7,936 |
– |
|||
|
Total Revenue(2) |
798,185 |
460,281 |
2,324,283 |
807,164 |
|||
|
Royalties |
(98,551) |
(60,554) |
(257,465) |
(109,261) |
|||
|
Operating expenses |
(363,264) |
(281,235) |
(1,065,091) |
(536,842) |
|||
|
Operating Income (loss)(1) |
336,370 |
118,492 |
1,001,727 |
161,061 |
|||
|
Expenditures on exploration and evaluation |
250,080 |
– |
250,080 |
– |
|||
|
Expenditures on property and equipment |
3,413,834 |
93,800 |
4,333,412 |
93,800 |
|||
|
Acquisition of property and equipment |
– |
– |
– |
1,526,114 |
|||
|
REALIZED PRICES(2) |
|||||||
|
Crude oil |
$/bbl |
83.85 |
97.91 |
83.94 |
77.17 |
||
|
Natural gas |
$/mcf |
0.24 |
2.26 |
0.88 |
2.38 |
||
|
NGLs |
$/bbl |
56.18 |
70.29 |
67.62 |
65.81 |
||
|
Realized Price(2) |
$/boe |
40.47 |
39.82 |
43.37 |
31.68 |
||
|
Processing revenue |
$/boe |
0.19 |
– |
0.15 |
– |
||
|
Royalties |
$/boe |
(5.02) |
(5.24) |
(4.82) |
(4.29) |
||
|
Royalties as a percentage of revenue(2) |
% |
12 % |
13 % |
11 % |
14 % |
||
|
Operating expenses |
$/boe |
(18.50) |
(24.33) |
(19.94) |
(21.07) |
||
|
Operating Netback(1) |
$/boe |
17.14 |
10.25 |
18.76 |
6.32 |
||
|
(1) Non-GAAP financial measure. Refer to the “Non-GAAP Measures” section within the MD&A for additional information. (2) Supplementary financial measure. Refer to the “Supplementary Measures” section within the MD&A for additional information on supplementary financial measures.. |
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Q3 2024 (“Q3/24”) Highlights
- Quarterly Production Growth – Achieved average daily production of 213 boe/d during Q3/24, exceeding Q2/24 by 10%.
- Operating Netback(1) – Maintained an improved operating netback of $17.14/boe, driven by a lower operating expense of $18.50/boe.
- Successful Summer Drilling Program – Drilled two horizontal multilateral wells at core Killam property, both of which came on production in August and achieved peak production in October.
- New Peak Corporate Production – Subsequent to the end of Q3/24, October production averaged 290 boe/d
Forward Planning at New Core Area
As previously announced, Westgate has acquired new lands in the Cold Lake Oil Sands area of Northern Alberta. Six sections (1,536 hectares) of mineral rights were acquired from the Crown and are prospective for multilateral horizontal drilling in the Mannville Stack. Q4 2024 is being spent on designing and planning a drilling program for these new lands which is expected to commence in Q1 2025. An updated 2025 capital budget will be provided in early 2025
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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