Spyglass Resources Corp. Reports Unaudited Earnings and Production Results for the Third Quarter and Nine Months Ended September 30, 2015; Provides Earnings and Production Guidance for the Year 2015; Reports Impairment Charges for the Third Quarter Ended September 30, 2015
For the nine months, the company reported funds flow from operations of CAD 21,183,000 or CAD 0.16 per share. Net loss was CAD 217,562,000 or CAD 1.70 per share. Capital expenditures were CAD 9,223,000.
For the quarter, the company reported average oil production of 3,431 bbls/d against 5,045 bbls/d a year ago. NGLs was 284 bbls/d against 410 bbls/d a year ago. Natural gas production was 33,468 Mcf/d against 48,379 Mcf/d a year ago. Total production was 9,293 boe/d against 13,518 boe/d a year ago.
For the nine months, the company reported oil production of 3,781 bbls/d. NGLs was 284 bbls/d. Natural gas production was 35,970 Mcf/d. Total production was 10,060 boe/d.
Management anticipates that the 2015 capital program will be CAD 11 million primarily focused on maintenance capital expenditures. The capital program coupled with the company's relatively low 21% decline rate is expected to result in average production of approximately 9,000 boe/d for the year. Spyglass is developing its 2016 capital program in the context of continued weakness in forward commodity prices, the Company's ongoing asset disposition program and need to reduce leverage.
The increase in net loss is primarily due to impairments of CAD 35 million recognized in the third quarter of 2015 in the South Oil and Dixonville areas triggered by continued declines in forecasted crude oil and natural gas commodity prices.