Canadian Overseas Petroleum 1Q Sales Rose — Energy Comment

By Jaime Llinares Taboada

 Canadian Overseas Petroleum Ltd. on Tuesday reported that its sales rose in the first quarter of 2022, although its total net production dropped slightly compared with the fourth quarter. Here's what the Wyoming-focused oil-and-gas company had to say:
 
 "COPL's net crude oil sales before royalties remained consistent at an average of 1,114 bbl./d as compared to 1,094 bbl./d in the fourth quarter of 2021."
 
"Due to Cuda Energy LLC's operating arrears liability, as a joint interest partner in the Wyoming assets, the Company has held Cuda's average production of approximately 477 bbl./d in the first quarter of 2022 and 506 bbl./d in Q421 to offset the ongoing arrears. Thus, in aggregate, the Company's total net average oil production in Q122 was 1,591 bbl./d as compared to 1,600 bbl./d in Q421."
 
"Petroleum sales, net of royalties, increased to $7.1 million from $5.8 million in Q421. Cuda's petroleum sales, net of royalties, was $2.7 million in Q122 and $2.3 million in Q421 for an aggregate amount to the Company's account of $9.8 million for Q122 an increase from $8.1 million in Q421."
 
"The Company's realized hedging loss was $0.9 million as compared to a realized hedging gain of $0.2 million in Q421."
 
"In an effort to manage its capital resources and liquidity, the Company reduced capital expenditures to $3.0 million as compared to $10.7 million in Q421."
 
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT