Granite Oil Corp. Reports Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2018; Provides Production and Capital Expenditure Guidance for the Second Half of 2018
For the six months, the company reported oil and natural gas revenues of $24,769,000 against $28,239,000 a year ago. Funds from operations were $6,800,000 or $0.19 per diluted share against $13,303,000 or $0.39 per basic and diluted share a year ago. Net loss was $3,714,000 or $0.11 per basic and diluted share against net income of $2,384,000 or $0.07 per basic and diluted share a year ago. Capital expenditures were $9,302,000 against $10,637,000 a year ago. Net debt was $47,072,000 as of June 30, 2018 against $35,985,000 as of June 30, 2017.
For the quarter, the company reported Natural gas production of 121 mcf/d against 448 mcf/d a year ago. Crude oil production was 2,197 bbls/d against 2,784 bbls/d a year ago. Total production was 2,217 boe/d against 2,859 boe/d a year ago.
For the six months, the company reported Natural gas production of 204 mcf/d against 588 mcf/d a year ago. Crude oil production was 2,177 bbls/d against 2,855 bbls/d a year ago. Total production was 2,211 boe/d against 2,933 boe/d a year ago.
The company forecasting a budget ranging from 1,900 bbls/d to 2,100 bbls/d of oil production for the second half of 2018, with capital spending of approximately $1.5 million to $3.5 million. Moving forward, Granite has an inventory of 85 potential well locations with a plan to drill approximately five wells per year, in conjunction with the expansion of the EOR scheme, to ensure the most efficient, long-term recovery from the pool. At this pace, Granite has many years of future drilling, with forecast annual capital spending averaging between $10 and $12 million, and average annual production of 2,000 - 2,300 bbl/d.