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Canadian Overseas Petroleum Ltd said on Tuesday that its crude oil and petroleum sales declined since the fourth quarter, mainly due to severe weather conditions, but incurred a net hedging gain on butane swap contracts. Canadian Overseas Petroleum is an oil and gas exploration, production and development company with operations focused in the US state of Wyoming. Canadian Overseas reported average crude oil sales before royalties of 974 barrels per day in the first quarter of 2023, down from 1,177 barrels per day in the fourth quarter of 2022. It said this was mainly due to operational interruptions at certain high impact wells. In particular ‘unusually severe winter weather conditions’ restricted access to and within several oil fields. The company said petroleum sales net of royalties in the same periods decreased to $5.2 million from $6.7 million. It attributed this to the above production decline and to a drop in the realised sales price of oil to $74.94 per barrel from $79.84. Operating netback also decreased to $17.19 per barrel from $23.38 per barrel, due to various factors including the severe weather conditions increasing operating costs. However this excludes the net realised hedging gain of $500,000 incurred on butane swap contracts, compared with a net loss of $2.2 million on crude oil and butane swap contracts in the previous quarter. Canadian Overseas said it reduced capital expenditures to $1.6 million from $2.3 million in order to manage capital resources and liquidity. As at March 31 Canadian Overseas’ cash position was $10.7 million, up from $4.0 million as at December 31. Shares in Canadian Overseas were 2.8% lower at 5.25 pence in London on Tuesday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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