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Alberta-based Zargon Oil & Gas has released its fourth quarter 2018 production volumes and announced the 2018 year end reserve totals.
Zargon Oil & Gas (TSX:ZAR) has released its fourth quarter 2018 production volumes and announced the 2018 year end reserve totals. The company will release its 2018 audited financial results on March 14, 2019, after market close.
As quoted from the press release:
2018 FOURTH QUARTER PRODUCTION VOLUMES:
Fourth quarter 2018 production averaged 1,786 barrels of oil equivalent per day, a 26 percent decline from the fourth quarter 2017 rate of 2,416 barrels of oil equivalent per day. The reduced volumes were primarily due to the suspension of discretionary oil exploitation capital programs, the deferral of routine maintenance operations due to cash constraints, minor property sales and the shut-in of uneconomic natural gas properties.
Fourth quarter 2018 oil and liquids production averaged 1,575 barrels per day, and compares to rates of 1,680 barrels of oil and liquids per day in the preceding quarter and 1,924 barrels of oil and liquids per day in the fourth quarter of 2017. Fourth quarter 2018 natural gas production averaged 1.27 million cubic feet per day, and compares to rates of 1.64 million cubic feet per day in the preceding quarter and 2.95 million cubic feet per day in the fourth quarter of 2017.
For calendar 2018, Zargon’s production averaged 2,069 barrels of oil equivalent per day, and was comprised of 1,751 barrels of oil and liquids per day and 1.91 million cubic feet per day of natural gas. We are forecasting first half 2019 production to average approximately 1,800 barrels of oil equivalent per day, which is comprised of 1,585 barrels of oil and liquids per day and 1.30 million cubic feet of natural gas per day. This forecast is based on $2.0 million of first half 2019 capital expenditures. Additional details regarding guidance, capital budgets, oil exploitation opportunities, hedging and corporate outlook are provided in our updated presentation and previous press releases that are located on our website at www.zargon.ca.
2018 YEAR END RESERVES:
Zargon’s reserves have been appraised by our independent reserves evaluator McDaniel & Associates Consultants Ltd. and are effective as of December 31, 2018. Zargon’s 2018 year end proved and probable total reserves totalled 9.14 million barrels of oil equivalent, a 27 percent decrease from the 2017 year end reserves of 12.45 million barrels of oil equivalent. Total proved and probable oil and liquid reserves are 8.24 million barrels and represent 90 percent of Zargon’s total reserves.
Zargon’s 2018 year end proved developed producing reserves decreased 15 percent to 5.86 million barrels of oil equivalent and included 5.26 million barrels of oil and liquids. Zargon’s proved developed producing reserve totals represent 64 percent of the Zargon’s total proved and probable reserves.