two junior oil producers
This is a comparison of two junior oil producers-Bnk Petroleum and Connacher Oil and Gas.Both have large acreage with proved and probable reserves.Connacher says it has 500 million barrels of proved and probable reserves;Bnk says it has large reserves.Both have sold off assets recently in order to improve their balance sheet.Bnk has sold off it' sTishomingo field assets which contained 80% of it's former production.In addition it has opened up five new wells in Oklahoma .After the Woodford Sale of it's chief assets it is just starting to get new production underway.Production averaged 302 barrels per day in their Caney area.This does not count production from their their most successful well.They have paid down debt from $41 million to just $100,000 while capital expenditures increased by $10 million.It had a loss of $ 2.4 million versus a loss of$4.3 million for the same quarter last year.
Connacher sold off it's Montana refinery which had a lot of revenue but was a drain on earnings.Consequently in 2012 it had a reduction of assets by $200 million and a reduction of it's liabilities by about the same amount.Now it is focussing on it's heavy oil assets in the Great Divide area of the oil sands (near Fort Mcmurray).Production for the third quarter averaged 11,800 barrels per day.This is 2% higher than the previous quarter.In September production was up to 12,100 barrels per day.Four new infil wells were tested and will be ready for production by the end of December(this year).92%of it's production is slated for outside of Alberta.Connacher is now using unit trains which is reducing it's transportation costs.But Connacher has all of it's production in Alberta not in Oklahoma nor Poland.
Both stocks show potential for the future.Bnk has an almost debt-free balance sheet and is increasing production in Oklahoma and is getting approvals on it's Polish properties.But it's price is six to seven higher than ConnacherAlso Connacher seems to have huge potential if it's reserve calculations are correct.Inaddition,Connacher has been increasing production for the last two or three quarters with new production coming onstream in December.The immediate future looks better for Connacher but Bnk looks good with almost no debt to weigh down it's very low production of petroleum.
Connacher sold off it's Montana refinery which had a lot of revenue but was a drain on earnings.Consequently in 2012 it had a reduction of assets by $200 million and a reduction of it's liabilities by about the same amount.Now it is focussing on it's heavy oil assets in the Great Divide area of the oil sands (near Fort Mcmurray).Production for the third quarter averaged 11,800 barrels per day.This is 2% higher than the previous quarter.In September production was up to 12,100 barrels per day.Four new infil wells were tested and will be ready for production by the end of December(this year).92%of it's production is slated for outside of Alberta.Connacher is now using unit trains which is reducing it's transportation costs.But Connacher has all of it's production in Alberta not in Oklahoma nor Poland.
Both stocks show potential for the future.Bnk has an almost debt-free balance sheet and is increasing production in Oklahoma and is getting approvals on it's Polish properties.But it's price is six to seven higher than ConnacherAlso Connacher seems to have huge potential if it's reserve calculations are correct.Inaddition,Connacher has been increasing production for the last two or three quarters with new production coming onstream in December.The immediate future looks better for Connacher but Bnk looks good with almost no debt to weigh down it's very low production of petroleum.
Comments
Post a Comment