Canada’s Spartan Delta rebounds in Q3
New oil and liquids production from acquisitions earlier this year in the oil window of the Montney shale basin pushed net income for Canadian producer Spartan Delta to C$126.9mn (US$102.01mn) in Q3 2021, reversing a C$7.3mn loss a year ago, it said November 9.
In the quarter, the company completed Montney acquisitions at Ferrier and Velvet for an aggregate cash consideration of C$393mn and debt repayment on the Velvet assets of C$352.5mn. With the addition of 440 net acres of Montney land, Spartan Delta is now the largest land holder in the Montney oil window.
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Total production rose 76%, to 46,282 barrels of oil equivalent (boe)/day from 26,282 boe/d, reflecting a full month of operations from the Ferrier and Velvet acquisitions and outperformance of early development work in the Deep Basin.
Crude oil production jumped to 4,657 barrels/day from 318 b/d in Q3 2020, while natural gas production rose to 189.3mn ft3/day from 108.2mn ft3/d.
“Increased production and the impact of the diversification in Spartan’s product mix is reflected by the significant increase in Spartan’s sales revenue and average selling prices,” it said. Oil and gas sales were C$146.1mn in Q3, 273% higher than the year ago period and 52% higher than Q2 2021.
Field estimates put October production at 68,000 boe/day, Spartan Delta said.