Frontera Energy has released its Q1 2019 results highlights in the announcement include a 4-percent production uptick.
South America-focused Frontera Energy (TSX:FEC) has released its Q1 2019 results with an overview of production at the company’s various projects. One of the highlights in the announcement is a 4-percent quarter-over-quarter production uptick.
As quoted from the press release:
Richard Herbert, Chief Executive Officer of Frontera, commented: “2019 is off to a strong start for Frontera, with our production and exploration proceeding in line with guidance for 2019 and our plan to sustain production in Colombia at current levels for the next five years as we grow production and reserves from new projects in the North Andean region. We also have made significant progress unwinding legacy transportation commitments, which will have long-term benefits for the Company’s profitability and flexibility. Our upstream investments are moving forward, with drilling soon to start on the VIM-1 block in Colombia and on the Corentyne block offshore Guyana. Lastly, we demonstrated our commitment to enhancing shareholder returns with ongoing share repurchases and dividends.”
Frontera delivered estimated first quarter 2019 production of 67,930 boe/d within 2019 production guidance range of 65,000 to 70,000 boe/d despite production from Block 192 in Peru being off line for most of the quarter. Current production is estimated at over 75,000 boe/d, as production from Block 192 in Peru continues to ramp back up towards pre-force majeure volumes. Current Block 192 production is over 10,000 bbl/d with total Peru production estimated at 10,650 bbl/d.
Colombia production averaged approximately 65,560 boe/d in the first quarter of 2019, an increase of 4 percent from the fourth quarter of 2018 as a result of increased production at Quifa following the commissioning of the water handling expansion project and continued stable production at Guatiquia, assisted by the Candelilla-7 development well which is currently producing at a stable rate of approximately 2,000 bbl/d. The Company’s first quarter 2019 Colombia production was the highest since the fourth quarter of 2017. The Company drilled 29 development wells in Colombia during the first quarter of 2019 compared to 27 development wells planned, including 26 in the Quifa area, two in the Copa field (in the Cubiro block) and one in the Guatiquia block. There were two exploration wells drilled compared to four planned, one at Sabanero and one at Jaspe, while two additional exploration wells at Mapache and Jaspe which were initially planned for the first quarter were deferred until later in 2019. At the Copa field, five additional development wells and one or two water injector wells are planned in 2019. This increased development drilling, combined with increased water injection drilling in 2019, is expected to increase field level production from approximately 4,000 bbl/d currently to over 10,000 bbl/d by the end of 2020.