Canadian Overseas Petroleum Limited and its affiliates (COPL), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona counties, Wyoming, USA, announces the publication of its Financial Statements and Management Discussion and Analysis for the three and six months ended June 30, 2023.

Second Quarter 2023 Operational and Financial Highlights:

• The Company commenced upgrading its gas gathering system in the second quarter to debottleneck restrictions at certain well locations, to recover produced gas back to the gas plant and to reduce gas flaring.   COPL is pleased to announce that the gas gathering system is functioning and was commissioned on time and under budget in July 2023.  
• The Company interest crude oil sales before royalties averaged 1,103 bbls/d as compared to 974 bbls/d in the first quarter of 2023.
• Petroleum sales, net of royalties were $5.6 million as compared to $5.2 million in the first quarter of 2023. The increase is due mainly to the increase in oil production partially offset by a reduction in the realized sales price of oil of $71.75/bbl as compared to $74.94/bbl in the first quarter of 2023.
• The Company incurred a realized hedging gain of $0.1 million on butane hedge contracts as compared to $0.5 million in the first quarter of 2023. The Company had no crude oil hedge swap contracts in place in the first half of 2023 due to a hedge restructuring in December 2022. The butane hedges were put in place to protect the liquid purchases required for the miscible flood injection program.
• The operating netback was $20.93/bbl, before the net realized gain on butane hedge contracts as compared to $17.19/bbl, in the first quarter of 2023. The increase is due mainly to the reduction in operating expenses of $6.98/bbl in the second quarter of 2023, partially offset by the decrease in the realized sales price of oil in the current quarter. 
• The Company initiated several G&A reductions in the quarter as costs were $1.9 million as compared to $2.3 million in the first quarter of 2023.  The Company intends to implement further cost savings in the third and fourth quarters of 2023.  
• A cash position of $5.2 million as at June 30, 2023 as compared to $4.0 million as at December 31, 2022.

KeyFacts Energy Industry Directory: Canadian Overseas Petroleum