Raging River Reports Second Quarter Financial and Operational Results

- August 11th, 2015

Raging River Exploration (TSX:RRX) announced its financial and operational results for the three and six months period ended June 30. The company also included its guidance for the remainder of 2015.

Raging River Exploration (TSX:RRX) announced its financial and operational results for the three and six months period ended June 30. The company also included its guidance for the remainder of 2015.
As quoted in the press release:

  • Achieved another quarterly production record with average production of 13,347 boe/d (97% oil) representing an increase of 34% over the comparable period in 2014 and a 21% production per share increase from the comparable period of 2014.
  • The Company’s capital expenditures were $33.4 million including $32.3 million on development activities in addition to $1.1 million on land. A total of 36 net Viking horizontal wells were drilled and a total of 48 net wells were completed and placed on stream inclusive of the 19.4 net wells drilled and not completed in the first quarter. Average on stream costs during the quarter were $700,000 per well representing a 22% cost reduction from the average costs seen in 2014.
  • Generated top decile operating netbacks of $42.92/boe and funds flow netbacks of $40.79/boe in addition to positive earnings of $10.00/boe.
  • Achieved our eighth consecutive quarterly decrease in operating and transportation costs to $12.08/boe, a 14% reduction from the comparable quarter of 2014 and a 5% reduction quarter over quarter.
  • Continued our diligent cost control with top decile general and administrative costs of $1.30/boe, a reduction of 9% from the comparable period in 2014.
  • Maintained balance sheet strength with second quarter exit net debt of $99.1 million representing 0.5 times debt to the second quarter annualized cash flow.

2015 guidance:

We are maintaining our capital budget of $235 million inclusive of $40 million of acquisitions, $20 million of waterflood capital in addition to $175 million of exploration and development expenditures. Annual average 2015 production guidance of 13,500 boe/d and exit production guidance of 15,000 boe/d remains unchanged. Based on current strip pricing of approximately US$46.50/bbl WTI for the remainder of 2015 we expect to exit the year with an exceptionally strong balance sheet with an estimated debt to trailing cashflow of approximately 0.75 times.

Click here to read the full Raging River Exploration (TSX:RRX) press release.

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