Raging River Reports Third Quarter Financial and Operational Results

- November 6th, 2015

Raging River Exploration (TSX:RRX) announced its operational and financial results for the three and nine months ended September 30. The company reported another quarterly production record in Q3, with average production of 13,418 barrels of oil equivalent per day, marking a 26 percent increase compared to the same period in 2014.

Raging River Exploration (TSX:RRX) announced its operational and financial results for the three and nine months ended September 30. The company reported another quarterly production record in Q3, with average production of 13,418 barrels of oil equivalent per day, marking a 26 percent increase compared to the same period in 2014.
Third quarter 2015 highlights:

  • Achieved another quarterly production record with average production of 13,418 boe/d (97% oil) representing an increase of 26% over the comparable period in 2014 and a 13% production per share increase from the comparable period of 2014.
  • Achieved funds flow from operations of $43.6 million ($0.22/share basic) and earnings of $10.9 million.
  • The Company’s capital expenditures were $49.8 million including $40 million on development activities, $5.6 million on waterflood initiatives and $4.2 million on a property acquisition. A total of 65 net Viking horizontal wells were drilled at a 99% success rate. Average on stream costs during the quarter were approximately $700,000 per well representing a 22% cost reduction from the average costs seen in 2014.
  • Raging River generated top decile operating netbacks of $37.22/boe and funds flow netbacks of $35.33/boe in addition to industry leading earnings of $8.81 per boe.
  • Achieved our ninth consecutive quarterly decrease in operating and transportation costs to $10.51/boe, a 23% reduction from the comparable quarter of 2014 and a 13% reduction quarter over quarter.
  • Continued our diligent cost control with top decile general and administrative costs of $1.18/boe, a reduction of 15% from the comparable period in 2014.
  • Maintained balance sheet strength with third quarter exit net debt of $103.7 million representing 0.6 times debt to the third quarter annualized cash flow

Guidance:

The Raging River team has continued to focus on reducing the controllable aspects of our business including capital costs, operating and general and administrative expenses, resulting in industry leading netbacks. Operating and transportation costs have decreased steadily since the fourth quarter of 2012 from in excess of $14 per boe to the current level of $10.50 per boe. Based on internal forecasts, the current operating and transportation cost structure of $10.50 per boe is estimated to be sustainable throughout 2016. General and administrative expenses are a continuous focus at Raging River. As a result of prudent management of internal resources, we have been able to maintain our general and administrative levels below $1.50 per boe continuously since the first quarter of 2014. This focus on costs and full utilization of our human resources has afforded us the flexibility to not implement any staff reductions during this period of low oil prices.
The improved cost structure during 2015 has resulted in considerable improvements to our sustainability. The capital required to maintain production at our estimated Q4 2015 production rate of 14,000 boe/d is approximately equivalent funds flow from operations at a WTI oil price of US$45/bbl. Formal guidance for 2016 is anticipated to be released in mid-December however a recently adopted multi-year strategic plan provides the framework for 2016 and beyond.

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

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