Samson Oil & Gas Limited (ASX: SSN) presented its quarterly report for the period ended 31st March 2019 on 2nd May 2019. As per the company, the average net production for the quarter stood at 524 barrels of oil equivalent a day (barrels sold), which marked a decline of 28% as compared to the average production of 726 barrels per day (barrels sold) in the quarter ended 31st December 2018.
Samson mentioned that on a gross Operated basis the current 30-day production rate (as at April) stood at 822 BOPD, in which 598 BOPD is net to the company. The company witnessed an increase in production rate in April amid recommencing of wells, previously shut-in due to weather conditions.
Production by quarter:
The production rose consecutively from the second quarter of the year 2018 till the last quarter of the same year; however, the production declined in the first quarter of the year 2019 amid production loss from temporary suspension of the company’s wells due to adverse weather conditions.
The net oil production for the March quarter was at 46,258 barrels, which resulted in a revenue of US$2,246,288. The net gas production for the March quarter stood at 5,213Mscf, which resulted in a revenue of US$16,368. The net revenue for the quarter stood at US$2,262,656, which marked a decline as compared to the revenue of US$2,896,979 in December 2018 quarter. The decline in revenue was mainly due to the production loss as the company realized higher commodity prices during the March quarter.
The average realized sales proceed for oil stood at $48.56 a barrel as compared to the price of $44.73 a barrel in the December 2018 quarter. However, the decline in natural gas prices led towards an average realized price of $3.14 in March 2019 quarter, as compared to an average realized price of $4.85 in December 2018 quarter.
The company marked a net cash outflow of US$829k from operational activities during the March 2019 quarter, and no other significant cash flow was observed; further, the cash and cash equivalent at the end of the period stood at US$953K.
Samson is estimating to spend a significant amount on the exploration and development activities during the course of the next quarter, and the total cash outflow is estimated at US$3,550K.
Shares on ASX:
The trading of the shares of the company is suspended on the Australia Stock Exchange. However, in an announcement, Samson mentioned that it secured a US$35.5 million refinancing transaction, effective from April 9, 2019. As per the company, the proceeds from the financing will be used to retire the existing line of credit, repay outstanding creditors and further, the proceeds from the financing will provide the company with working capital and the company aims to enter an infill development drilling program.
Samson mentioned that the refinancing improved the financial conditions of the company and it will seek relisting of its shares that will allow the resumption of trading of the company’s ordinary shares.
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