Calgary-based Canadian Superior said last week that unusually warm weather in February and March, which resulted in a premature spring breakup, led to a "slight, temporary decline" of 7% in oil and natural gas production during the first quarter.
The independent's 1Q2005 production was 2,411 boe/d, down from 2,594 boe/d in 1Q2004. Natural gas production was 11.092 MMcf/d, down slightly from 11.88 MMcf/d from a year earlier, while oil and natural gas liquids production fell to 562 bbl/d from 614 bbl/d. Current daily production is estimated at 2,800 boe/d.
CEO Greg Noval said the first quarter was a temporary setback, and said the company will make up the difference with a successful drilling program planned this year.
"High impact, growth and value are the themes and objectives for Canadian Superior during 2005," said Noval. "We believe our management and professional staff have achieved significant gains by working very hard to deliver shareholders a growth strategy based on our continued development of Western Canadian cash flow and production focusing on our Drumheller core producing area and several other opportunities we have in Western Canada." Noval said the company's Western Canadian focus will grow this year with several opportunities offshore Trinidad and Tobago, as well as offshore Nova Scotia.
In 1Q2005, revenue grew 12% to C$10.1 million, up from C$9.1 million in 1Q2004. Cash flow from operations grew 20% to C$5.3 million, up from C$4.4 million, and net income improved by C$871,000 (up 114%) to a profit of C$0.1 million in 1Q2005, up from a loss of C$0.8 million recorded in 1Q2004.
"Over the last five years due to our focused operations offshore Nova Scotia, Canadian Superior has become the largest public company holder of exploration acreage offshore Nova Scotia, with 100% interests in six exciting exploration licenses totaling 1.293 million acres," said Noval. "During this time we have also evolved as one of the few active operators involved in all three main play types in the [Western Canadian Sedimentary] basin." However, he said that because of 2005 cost considerations and capital budgeting requirements, drilling in Trinidad and Tobago will take priority over offshore Nova Scotia.
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