Argent Energy gives an operational update
On October 16,2014 Argent Energy gave an operational update. The calculations they give are somewhat complicated.However they did give guidance for Q3 and the year.It stated that it had previously gave guidance for the third quarter of 6400 to 6500 barrels of oil per day and production met it's guidance for the third quarter.This is a 14% increase over Q2 production. Production they state averaged 6675 barrels per day for the 9 months.The increase Argent states is primarily due towork done on their Eagleford oil wells and their Ecobas natural gas wells which are subject to high decline rates.This increase in production resulted in Argent raising their annual guidance from 6200 to 6300 barrels per day to 6500 to 6600 barrels.Argent had stated in an earlier press release that there would be no drilling in the winter so there will be no new wells until the spring at least.
Finances
Argent stated that it has a credit facility of US$160 million and it has used $109 million.It has $51 million left but expects to use much of it's internal cash flow to reduce indebtedness and carry out operations.Argent adds that it is compliant with all credit facility covenants.Argent(AET) adds that it has hedged a good part of it's daily production of oil and natural gas at prices above current prices.And it comments that it believes that it's dividend, although at a current rate of 13.3%,is safe.
Quarterly results
Their full operational and financial results will be out on November 12.But there is not much new in this quarter.Production is up slightly and they do not want to take on more debt although they seem to be in areas where the geology is well known and there are fairly certain pools to be discovered.AET is largely playing it safe until the spring but at least production is rising and not falling during this hiatus.This stock should stay priced as it is or fall a little until the spring. It's revenue will be protected as it has hedged almost half of it's production at pretty good prices.
Finances
Argent stated that it has a credit facility of US$160 million and it has used $109 million.It has $51 million left but expects to use much of it's internal cash flow to reduce indebtedness and carry out operations.Argent adds that it is compliant with all credit facility covenants.Argent(AET) adds that it has hedged a good part of it's daily production of oil and natural gas at prices above current prices.And it comments that it believes that it's dividend, although at a current rate of 13.3%,is safe.
Quarterly results
Their full operational and financial results will be out on November 12.But there is not much new in this quarter.Production is up slightly and they do not want to take on more debt although they seem to be in areas where the geology is well known and there are fairly certain pools to be discovered.AET is largely playing it safe until the spring but at least production is rising and not falling during this hiatus.This stock should stay priced as it is or fall a little until the spring. It's revenue will be protected as it has hedged almost half of it's production at pretty good prices.
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