Revenues C$1,305.0 million (-37%)
Cash Flow from Operations C$557 million (-46%)
Net income C$135 million (-79%)
EPS C$0.26 (-78%)
Production
Liquids 194.1 mbbls/d (+5%)
Natural gas 185 mmcf/d(-18%)
Average netback per boe C$30.19 (-49%)
Balance sheet
Asset
Current C$6,252 million
Total C$23,619 million
Liabilities
Current C$3,561 million
Total C$16,342 million
Equity C$7,277 million
P/E 10.5, P/B 1.6
Selected comments
North Sea
"During the quarter, we have had significant success at Hobby in the Golden Eagle area. We have completed drilling the Hobby discovery well and two sidetracks. All three wells encountered significant high quality oil pay. These results are encouraging and are at the high end of our predrill estimates. We plan to continue with appraisal activity and expect to spud an appraisal well shortly. In addition, we plan to drill a third sidetrack. The Golden Eagle area includes exciting discoveries at Golden Eagle, Hobby and Pink. We have a 34% operated interest in both Hobby and Golden Eagle and a 46% operated working interest in Pink. We have additional prospects in the area that we plan to drill later this year.
“We are excited with the discoveries we are making in the Golden Eagle area just north of our world-class Buzzard asset,” commented Romanow. “The development of these discoveries iseconomic at current commodity prices and in our view, development of this area will support a standalone platform.”
Long Lake Bitumen
"During the quarter we reached a significant milestone at Long Lake when we produced and sold first PSCTM from the upgrader. The main process units in the upgrader have been successfully commissioned and are operating. The gasifier is creating syngas that is being used in SAGD operations for steam generation and creating hydrogen that is being used for upgrading. This has
significantly reduced the need for purchased natural gas. During the upgrader ramp up, we expect that there will be periods of downtime as we work through the early stages of production and upgrading."
Horn River Shale Gas
"This shale gas play has the potential to become one of the most significant shale gas plays in North America. It has been compared to the Barnett Shale in Texas by other operators in the area as it displays similar rock properties and play characteristics. We have approximately 88,000 acres in the Dilly Creek area of the Horn River basin with a 100% working interest. As previously announced, we estimate these lands contain between 3 and 6 trillion cubic feet (0.5 to 1.0 billion barrels of oil equivalent) of recoverable contingent resource which could double our total proved reserves. Further appraisal activity is required before these estimates can be
finalized and commerciality established.
“We continue to be encouraged by the results of our shale gas drilling program,” said Romanow. “It demonstrates that we can produce the considerable resource potential contained in our lands. When gas prices recover, we will ramp up the pace of development and focus on reducing well costs."
Press release(.pdf)
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