PentaNova Energy Q2 Results Highlight Production Increase

PentaNova Energy (TSXV:PNO) has released its financial and operating results for the three and six months that ended June 30, 2018.

Canadian-based PentaNova Energy, is an exploration and production company focused on proven oil and gas plays in Latin America. The company has worked to establish an acreage position of heavy oil assets in Argentina, in addition to its previously acquired drill-ready natural gas assets in Colombia.

As quoted from the press release:

Highlights

Llancanelo

Operating	Three months ended June 30, 2018	Three months ended March 31, 2018
Gross production (100 percent) boe	105,302	111,024
Net working interest production boe	41,057	43,287
Average boe production per day (boe/d)	451	481

 

The Llancanelo net production recorded for each of the periods is for the 39 percent working interest held during Q1 2018 and Q2 2018. Subsequent to the closing of the Roch acquisition on October 27, 2017, which included an additional 10 percent working interest in Llancanelo, the company’s Llancanelo net production increased to 39 percent working interest.

During Q2 2018, the Llancanelo concession produced a total of 41,057 net boe (105,302 gross boe) compared to 43,827 net boe (111,024 gross boe) in Q1 2018, representing roughly a 5 percent decrease in production. This equated to average daily production of 451 net boe/d in Q2 2018 compared to 481 net boe/d in Q1 2018. The reduction in production can be attributed to scheduled maintenance that required certain wells on the concession to be shut in during the maintenance period.

Financial ($U.S. dollars)	Three months ended June 30, 2018		Three months ended March 31, 2018
	Total	Per boe	Total	Per boe
Revenue	2,189,946	54.29	2,270,243	52.45
Royalties	(471,875)	(11.49)	(446,478)	(10.31)
Operating expenses	(1,315,582)	(32.04)	(1,400,808)	(32.36)
Net operating profit	402,489	10.76	422,957	9.77

 

Impairment Loss

During the six months ended June 30, 2018, the company recognized impairments relating to the Llancanelo Asset of US$25.0 million. These impairments were the result of the difference between the period‐end net book value and management’s assessment of the recoverable amount of the Llancanelo Asset as of June 30, 2018 on account of the formal notification received from YPF regarding the relinquishment of the company’s working interest in the Llancanelo Asset and the termination of the YPF Farm‐In. Following completion of the write‐down, the Llancanelo Asset had a carrying value of approximately US$10.6 million.

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