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Granite Oil Curtails Output, Suspends Dividend Due to Canadian Oil Prices

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   |    Friday,December 07,2018

Granite Oil has suspended the payment of dividends due to Canadian oil prices, but the company notes this is temporary as it expects improvement in Canadian oil pricing through the first half of 2019.

The company also reported that it currently has approximately 200 bbl/d of oil production shut-in which is being re-pressurized by the Company’s EOR scheme.

This production can be brought on-stream quickly, when appropriate, to take advantage of improved prices for no incremental capital.

Risk Management

In the first quarter of 2019, Granite has 800 bbl/d of oil hedged at an average price of approximately $85.85 CAD compared to a fourth-quarter 2018 average of 1200 bbl/d at $72.68 CAD (assumes an exchange rate of $0.77 CAD/USD). The Company is also receiving improved pricing relative to WCS market prices as a result of its direct-to-refinery sales agreement. This agreement has the added benefit of ensuring the Company’s access-to-market when many producers are facing increased pipeline apportionment and associated pricing risks.



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