The up-and-coming oil and gas company reported a successful quarter, with year-over-year production up 197 percent to 17,968 barrels of oil equivalent per day.
Western Canada-focused oil and gas producer Ikkuma Resources (TSXV:IKM) has released its Q3 and nine month financial report.
The up and coming oil and gas company reported a successful quarter, with year-over-year production up 197 percent to 17,968 barrels of oil equivalent per day (boe).
During the same quarter in 2017, the Calgary-based energy producer had output of 6,043 boe per day.
In addition to the significant production increase, Ikkuma also raised its revenues substantially. For the nine month period, which ended September 30, 2018, Ikkuma’s coffers grew by 139 percent to C$59.2 million, compared to C$24.8 million for the same nine month period last year.
Both the increased output as well as an administrative and operations cost reduction helped contribute to the company’s 139 percent revenue growth.
In mid-August, Ikkuma entered into an agreement arrangement with liquefied natural gas producer Pieridae Energy (TSXV:PEA) for the later to acquire all issued and outstanding shares of Ikkuma Resources.
The acquisition of Ikkuma falls in line with Pieridae’s strategic plan of acquiring natural gas reserves and resources.
“The purchase of Ikkuma begins the final steps to reaching the final investment decision which along with our other partners will ensure that Canada has the opportunity to export its resources to international markets,” Alfred Sorensen, CEO of Pieridae, said at the time.
The business combination is advantageous for both companies, as they work to turn the Goldboro LNG facility, as well as Ikkuma’s natural gas assets into Canada’s premiere natural gas project.
“The Ikkuma team is excited to see capital deployed to the prolific conventional natural gas pools in the Alberta and BC Foothills and to supply gas through a fully integrated Canadian LNG Company,” Ikkuma CEO Tim de Freitas said.
The arrangement is scheduled to close at the end of Q4 2018.
Shares of Ikkuma were flat on Thursday (November 22), trading C$0.53.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.