Phoenix Global sees bright future despite declining revenue
London based oil and gas production and exploration firm Phoenix Global Resources announced on Friday that it had realised a combined average production of 11,537 barrels of oil equivalents per day (boepd) over the first six months of its trading year, 10,571 of which having come directly from its Argentinean operations.
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Phoenix said it realised oil prices of $50.32 per barrel in the South American nation, while gas averaged $3.87 per million British thermal unit (mmbtu) however, total revenue still saw a decline to $88m from the $102.4m it posted a year earlier primarily due to a lower sales volume attributed to the ongoing development and production programme at its Puesto Rojas asset.
The firm posted a 76.19% decline in EBITDA to $15.6m in the six months leading to 30 June.
At the end of the first half net debt was $93.3m, but as of 29 September the enlarged group's net debt position had swelled to $132.4m, but after having successfully brought 41 development wells into production on its Chachahuén licence with its partner YPF ahead of the Argentinean governments announcement to suspend price controls on domestic crude oil on 1 October, the firm felt confident that it would be able to turn things around in what remained of the second half.
Chief executive Anuj Sharma said, "In the oil market specifically, the recent suspension of price controls shows increasing confidence in the energy sector overall. Argentina is blessed with significant natural resources and, in particular, the world-class Vaca Muerta shale formation, which is the only shale formation outside North America that is consistently producing economically successful wells, producing in excess of 67,000 boepd."
As of 0935 BST, shares were holding steady at 60.00p.