These are just potential projections use Q2 09 costs per BOE and 2010 strip forward prices on gas and oil. The expenses per BOE by company may move up or down depending on numerous factors. Junior companies have production between 1,000 and 10,000 BOED and Intermediates have production between 10,000 and 100,000 BOED.
Highlights:
- 80 Companies with production between 1,000 and 100,000 BOED
- Production averaged 10, 744
- Gas weighted at 68%
- 6,543 BOED Gas and 4,201 BOED Oil
- Average expense per BOE $51.81 and $8.64 per MCF
- Based on average price of $5.07/MCF on gas the average company will lose $27M from gas production
- Based on average price of $89.40 per BOE of oil, the average company will make $66M from oil production
- The average company is expected to make $38.6M in straight profit
- Based on a blended rate, average company will lose $2.59 per BOE
| Company | Junior or Intermediate | Expenses per BOE | Expenses per MCF | Profit/Loss Gas | Profit/Loss Oil | Profit Loss Total | Projected Profit / Loss Per BOE | ||||
| Baytex | Intermediate | $37.39 | $6.23 | $(25,693,891) | $574,997,743 | $549,303,852 | $37.26 | ||||
| Freehold | Junior | $32.89 | $5.48 | $(2,437,109) | $94,788,408 | $92,351,299 | $34.68 | ||||
| Bonterra | Junior | $34.59 | $5.76 | $(3,052,126) | $60,185,743 | $57,133,617 | $31.22 | ||||
| Culane | Junior | $43.06 | $7.18 | $(1,912,098) | $18,023,094 | $16,110,996 | $29.82 | ||||
| ARC | Intermediate | $30.16 | $5.03 | $3,176,935 | $663,943,167 | $667,120,103 | $28.57 | ||||
| Angle | Junior | $28.87 | $4.81 | $2,451,540 | $69,334,343 | $71,785,883 | $26.32 | ||||
| West | Junior | $52.48 | $8.75 | $(7,576,614) | $42,465,153 | $34,888,540 | $23.36 | ||||
| Compton | Intermediate | $17.68 | $2.95 | $83,762,608 | $89,803,405 | $173,566,013 | $22.18 | ||||
| Bonavista | Intermediate | $34.81 | $5.80 | $(47,294,812) | $443,533,226 | $396,238,415 | $20.97 | ||||
| Peyto | Intermediate | $19.85 | $3.31 | $58,296,617 | $73,041,894 | $131,338,511 | $20.01 | ||||
| Enerplus | Intermediate | $36.01 | $6.00 | $(115,699,596) | $736,622,607 | $620,923,011 | $18.00 | ||||
| NAL | Intermediate | $43.84 | $7.31 | $(55,305,789) | $195,494,730 | $140,188,941 | $16.66 | ||||
| Pengrowth | Intermediate | $43.38 | $7.23 | $(194,369,170) | $690,107,149 | $495,737,979 | $16.53 | ||||
| Rock | Junior | $44.07 | $7.34 | $(8,125,682) | $28,092,172 | $19,966,490 | $16.43 | ||||
| Zargon | Junior | $43.83 | $7.31 | $(23,307,075) | $79,164,777 | $55,857,702 | $16.08 | ||||
| Zapata | Junior | $45.21 | $7.54 | $(6,836,426) | $22,124,709 | $15,288,283 | $15.88 | ||||
| Stonefire | Junior | $32.76 | $5.46 | $(819,859) | $8,490,058 | $7,670,199 | $15.35 | ||||
| Terra | Junior | $26.71 | $4.45 | $6,150,425 | $19,812,776 | $25,963,201 | $13.14 | ||||
| NuVista | Intermediate | $36.01 | $6.00 | $(37,363,866) | $145,665,364 | $108,301,498 | $11.51 | ||||
| ParamountRes | Intermediate | $34.80 | $5.80 | $(15,809,109) | $69,235,261 | $53,426,152 | $10.95 | ||||
| Arcan | Junior | $61.39 | $10.23 | $(5,164,478) | $10,900,233 | $5,735,756 | $10.32 | ||||
| Storm | Junior | $28.73 | $4.79 | $4,319,026 | $25,275,245 | $29,594,271 | $9.94 | ||||
| Enterra | Intermediate | $49.26 | $8.21 | $(35,973,108) | $70,736,678 | $34,763,570 | $9.47 | ||||
| Yoho | Junior | $30.49 | $5.08 | $(56,549) | $8,650,614 | $8,594,065 | $8.78 | ||||
| BlackPearl | Junior | $69.96 | $11.66 | $(14,177,858) | $29,709,101 | $15,531,243 | $8.23 | ||||
| Crew | Intermediate | $42.00 | $7.00 | $(38,139,978) | $76,879,000 | $38,739,022 | $7.88 | ||||
| Progress | Intermediate | $31.48 | $5.25 | $(11,279,286) | $100,084,149 | $88,804,863 | $7.19 | ||||
| Arsenal | Junior | $63.08 | $10.51 | $(8,796,390) | $14,391,740 | $5,595,349 | $6.86 | ||||
| Birchcliff | Intermediate | $40.64 | $6.77 | $(30,380,487) | $56,377,370 | $25,996,883 | $6.30 | ||||
| CrescentPoint | Intermediate | $77.75 | $12.96 | $(78,524,335) | $156,305,289 | $77,780,954 | $5.16 | ||||
| Ironhorse | Junior | $26.65 | $4.44 | $1,664,481 | $280,097 | $1,944,577 | $4.36 | ||||
| Wrangler West | Junior | $41.98 | $7.00 | $(3,487,253) | $5,026,823 | $1,539,570 | $3.78 | ||||
| Berens | Junior | $38.44 | $6.41 | $(9,794,526) | $15,548,526 | $5,754,000 | $3.77 | ||||
| Redcliffe | Junior | $45.80 | $7.63 | $(3,019,803) | $4,028,008 | $1,008,205 | $3.49 | ||||
| Iteration | Intermediate | $43.39 | $7.23 | $(59,242,938) | $77,696,681 | $18,453,743 | $2.95 | ||||
| NuLoch | Junior | $46.65 | $7.77 | $(2,042,124) | $2,531,655 | $489,531 | $2.65 | ||||
| Cinch | Junior | $32.51 | $5.42 | $(1,834,032) | $4,345,836 | $2,511,804 | $2.63 | ||||
| Trilogy | Intermediate | $40.41 | $6.74 | $(57,047,189) | $74,347,734 | $17,300,545 | $2.39 | ||||
| ProspEx | Junior | $41.04 | $6.84 | $(9,339,451) | $11,995,590 | $2,656,139 | $2.36 | ||||
| Galleon | Intermediate | $49.31 | $8.22 | $(70,950,307) | $84,679,002 | $13,728,695 | $2.34 | ||||
| Twin Butte | Junior | $44.70 | $7.45 | $(10,748,392) | $13,083,563 | $2,335,171 | $2.23 | ||||
| Celtic | Intermediate | $45.22 | $7.54 | $(43,017,073) | $47,497,909 | $4,480,837 | $1.13 | ||||
| Painted Pony | Junior | $56.75 | $9.46 | $(7,065,592) | $6,885,446 | $(180,146) | $(0.38) | ||||
| Crocotta | Junior | $52.12 | $8.69 | $(10,169,291) | $9,826,218 | $(343,073) | $(0.47) | ||||
| Open Range | Junior | $37.36 | $6.23 | $(5,118,064) | $4,264,295 | $(853,769) | $(1.04) | ||||
| Anderson | Junior | $39.23 | $6.54 | $(21,783,642) | $18,543,276 | $(3,240,366) | $(1.14) | ||||
| Dejour | Junior | $49.93 | $8.32 | $(2,722,597) | $2,473,972 | $(248,625) | $(1.23) | ||||
| Midnight | Junior | $50.20 | $8.37 | $(10,906,690) | $9,708,375 | $(1,198,316) | $(1.50) | ||||
| Diaz | Junior | $41.50 | $6.92 | $(2,347,191) | $1,652,267 | $(694,924) | $(2.82) | ||||
| Vero | Junior | $44.08 | $7.35 | $(28,792,327) | $20,959,635 | $(7,832,692) | $(3.05) | ||||
| Triton | Junior | $37.16 | $6.19 | $(2,195,687) | $895,163 | $(1,300,524) | $(3.79) | ||||
| Delphi | Junior | $41.99 | $7.00 | $(25,009,982) | $15,318,550 | $(9,691,432) | $(3.90) | ||||
| Advantage | Intermediate | $53.83 | $8.97 | $(177,713,443) | $133,010,451 | $(44,702,992) | $(3.95) | ||||
| Orleans | Junior | $45.20 | $7.53 | $(17,020,689) | $11,174,697 | $(5,845,992) | $(4.16) | ||||
| Midway | Junior | $44.55 | $7.43 | $(4,297,030) | $2,406,272 | $(1,890,757) | $(5.29) | ||||
| Bellamont | Junior | $49.37 | $8.23 | $(4,678,059) | $2,786,741 | $(1,891,318) | $(5.98) | ||||
| Petro-Reef | Junior | $46.00 | $7.67 | $(4,045,158) | $2,146,928 | $(1,898,231) | $(6.14) | ||||
| Fairborne | Intermediate | $53.62 | $8.94 | $(94,618,072) | $53,981,703 | $(40,636,369) | $(7.27) | ||||
| Sure | Junior | $42.52 | $7.09 | $(2,681,202) | $782,220 | $(1,898,981) | $(7.97) | ||||
| Intl Sovereign | Junior | $46.28 | $7.71 | $(4,805,030) | $1,951,872 | $(2,853,158) | $(8.19) | ||||
| Argosy | Junior | $46.28 | $7.71 | $(4,761,636) | $1,766,094 | $(2,995,542) | $(8.78) | ||||
| Canext | Junior | $48.60 | $8.10 | $(5,612,314) | $2,222,601 | $(3,389,713) | $(9.33) | ||||
| Monterey | Junior | $52.02 | $8.67 | $(14,688,641) | $6,355,442 | $(8,333,199) | $(9.80) | ||||
| Great Plains | Junior | $63.18 | $10.53 | $(10,421,598) | $4,109,462 | $(6,312,137) | $(13.29) | ||||
| Seaview | Junior | $56.48 | $9.41 | $(15,721,142) | $4,964,960 | $(10,756,182) | $(14.26) | ||||
| Daylight | Intermediate | $62.82 | $10.47 | $(190,780,947) | $67,081,407 | $(123,699,540) | $(14.70) | ||||
| Twoco | Junior | $46.39 | $7.73 | $(7,394,933) | $- | $(7,394,933) | $(15.97) | ||||
| Result | Junior | $50.13 | $8.36 | $(4,217,122) | $442,176 | $(3,774,946) | $(16.76) | ||||
| Insignia | Junior | $59.75 | $9.96 | $(6,702,579) | $1,589,563 | $(5,113,015) | $(18.12) | ||||
| Buffalo | Junior | $77.24 | $12.87 | $(25,047,474) | $5,539,305 | $(19,508,169) | $(19.69) | ||||
| Action | Junior | $81.40 | $13.57 | $(9,044,047) | $1,418,415 | $(7,625,632) | $(21.49) | ||||
| ParamountEng | Intermediate | $52.14 | $8.69 | $(218,666,684) | $- | $(218,666,684) | $(21.72) | ||||
| One | Junior | $70.05 | $11.68 | $(7,085,462) | $1,279,523 | $(5,805,939) | $(23.71) | ||||
| Second Wave | Junior | $87.87 | $14.65 | $(9,313,603) | $303,020 | $(9,010,583) | $(25.01) | ||||
| Cequence | Junior | $64.16 | $10.69 | $(16,585,972) | $1,853,871 | $(14,732,102) | $(26.07) | ||||
| Questerre | Junior | $92.28 | $15.38 | $(10,190,898) | $(372,551) | $(10,563,449) | $(35.91) | ||||
| Fairwest | Junior | $91.10 | $15.18 | $(15,409,190) | $(70,246) | $(15,479,436) | $(52.42) | ||||
| TRUE | Junior | $150.82 | $25.14 | $(261,827,829) | $(85,396,312) | $(347,224,142) | $(97.40) | ||||
| Canadian Phoenix | Junior | $189.85 | $31.64 | $(2,053,068) | $(31,045,696) | $(33,098,764) | $(102.81) | ||||
| Fortress | Junior | $161.47 | $26.91 | $(60,567,127) | $(336,450) | $(60,903,577) | $(130.46) | ||||
| Averages: | $51.81 | $8.64 | $(27,510,739) | $66,197,116 | $38,686,377 | $(2.59) | |||||
| AECO 12 Month Strip: $5.07/mcf | |||||||||||
| Oil NYMEX 12 Month Strip @ $.91 exchange: $89.40 | |||||||||||
Based on this information, approximately half of these companies will not turn a profit in the next year. Now, these are only projects and not actuals, so some of these companies will probably be able to put a strategy in place that will reduce gas production and boost oil production and thus move them to profitability. There are other companies that, no matter how hard they try, may not be able to reduce their costs and hedge a higher rate received to turn them to profitability.
These opinions are mine and may not reflect your view. If you would like to contact me, then please feel free to do so at info@argentis-group.com. Argentis Group assists oil and gas companies with operational audits to identify areas to reduce costs, increase revenues and increase the overall asset value of an oil and gas company.
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