FieldPoint Petroleum reports third quarter results
Thursday, Nov 15, 2012
AUSTIN, Texas, Nov. 14, 2012 /PRNewswire/ -- FieldPoint Petroleum Corporation (NYSE MKT:FPP) announced today its financial results for the three and nine months ended September 30, 2012.
Ray Reaves, President and CEO of FieldPoint, stated, "During the third quarter, our oil and natural gas revenues increased over the same period last year as a result of higher production, offset somewhat by lower natural gas prices. Even though our nine months net income and earnings per share both increased over the 2011 period, the three months net income and earnings per share were below our expectations for the period. This was due primarily to an unrealized loss on commodity derivatives during the period amounting to $314,000."
Mr. Reaves continued, "We are very pleased with the Company's financial performance year to date, even though much more dramatic results could have been realized in this quarter had the unrealized loss on commodity derivatives not occurred. Nevertheless, being well positioned financially has allowed management to continue its focus on building our production base through acquisitions and to proceed with the drilling of our third horizontal well, expected to be drilled during 2013. As previously announced, this well will be drilled in partnership with Cimarex Energy in Lea County New Mexico."
Oil and natural gas sales revenues increased 33% or $559,710 to $2,266,920 for the three-month period ended September 30, 2012 from the comparable 2011 period. Average oil sales prices increased 2% to $88.03 for the three-month period ended September 30, 2012 compared to $86.41 for the period ended September 30, 2011. Average natural gas sales prices decreased 24% to $3.34 for the three-month period ended September 30, 2012 compared to $4.39 for the period ended September 30, 2011. Sales volumes increased 21% on a BOE basis, primarily due to production from the two new wells in New Mexico completed in December 2011 and September 2012. The higher sales volumes accounted for an increase in revenue of approximately $563,000 which was offset by approximately $3,000 due to lower commodity prices. We anticipate volumes to increase in the coming quarters primarily due to production from the new well in New Mexico completed in September 2012.
Lease operating expenses decreased 4% or $25,164 to $659,227 for the three month period ended September 30, 2012 from the comparable 2011 period. This was primarily due to decreases in costs associated with remedial repairs in 2012 as compared to 2011 offset by costs associated with new field production. Lifting costs per BOE decreased 20% or $5.47 to $21.28 for the period primarily due to higher production. We anticipate lease operating expenses to increase over the following quarters due to additional remedial repairs and workover expenses and production costs related to the new well completed in September 2012 in New Mexico.
SOURCE FieldPoint Petroleum Corporation
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