Quarterly / Earnings Reports | First Quarter (1Q) Update

Granite Oil Talks Q1 2019 Results

Email    |    Print    |    Bookmark

You Need to login first

   |    Wednesday,May 08,2019

Operational Update and Budget

Granite recently brought its development well drilled in the second quarter on-stream at a restricted rate, and is currently maintaining Corporate production of approximately 2,000 bbl/d with a number of wells shut-in as part of its rotational re-pressurization process and EOR optimization. The Company continues to focus on cost reduction, operational efficiencies, and debt reduction, as it prioritizes stability in light of the recent volatility in the Canadian energy market. The Company is maintaining its conservative budget for 2019 of approximately 1,650 bbl/d of oil production for the year, with capital expenditures of approximately $6.1 million, providing for total funds from operations of approximately $17.6 million, and exit net debt of approximately $36 million. The budget assumes average West Texas Intermediate (‘WTI’) pricing of approximately $60 USD/bbl, an average Western Canada Select (‘WCS’) differential to WTI of approximately $16 USD/bbl, and a foreign exchange rate of $1.33 CAD per USD for the remainder of 2019.

Outlook

Following an exceptionally challenging time for the Canadian energy industry in 2018, Granite continues to show its resiliency. The Company posted top-tier producing reserve metrics again for 2018, reduced its total net debt by over 8% in the first quarter of 2019 alone, and continues to prove-up its drilling inventory with its recent development well. With this positive momentum and improvement in Canadian commodity pricing, Granite is off to a strong start for 2019.