Petrolifera Restores Sales Growth in 3Q 2007
Petrolifera Petroleum (TSX: PDP) reports its sales growth was restored during the third quarter ("Q3") of 2007. As a consequence, successive period cash flow from operations before changes in working capital ("cash flow")(1) rose 28%to $18.6 million and year-to-date 2007 cash flow of $57.7 million was 85 percent higher than a year ago. Higher volumes of both crude oil and natural gas sales were the principal contributing factors. The company continued to expand its overall exploratory holdings in both Argentina and Colombia and commenced its seismic program in Peru.
Highlights are as follows:
Crude oil sales increased eight percent over the second quarter 2007 ("Q2"), while equivalent volumes rose nine percent as natural gas sales rose 26% Year-over-year crude oil sales rose 91 percent to 8,376 bbl/d while equivalent sales rose 90 percent to 8,696 boe/d.
Cash flow was $18.6 million or $0.37 per common share in Q3 2007 ($18.4 million in 2006) while net earnings declined to $4.9 million ($0.10 per common share), from $15.7 million ($0.39 per common share), fuelled by the impact of a strong Canadian dollar. Year-over-year cash flow increased 85 percent to $57.7 million ($1.22 per common share) while earnings decreased two percent to $24.4 million or $0.52 per common share.
Self-financed capital expenditures thus far in 2007 were $53.4 million, primarily for drilling new wells and constructing facilities and infrastructure in Argentina. Working capital was $22.7 million at the end of the reporting period as short-term investments were reclassified to long-term after an impairment provision.
New concessions were acquired in Argentina and Colombia. A new US$60 million credit facility was established, ensuring strong liquidity.
- Gran Tierra to Acquire Petrolifera (Jan 18)
- Petrolifera to Start Gas Production at Brillante Well (Nov 11)
- Petrolifera Wraps Up Long Term Test in Colombia (Sep 21)