CALGARY,
AB, Aug. 30, 2024 /CNW/ - Westgate Energy
Inc. ("Westgate" or the "Company") (TSXV: WGT), is
pleased to announce the filing of its unaudited financial and
operating results for the three and six months ended June 30, 2024. Selected financial and operating
information should be read in conjunction with Westgate's unaudited
consolidated financial statements and related management's
discussion and analysis ("MD&A") for the three and six
months ended June 30, 2024 and 2023,
which are available on SEDAR+ at www.sedarplus.ca and on Westgate's
website at www.westgateenergy.ca.
Q2 2024 ("Q2/24") Financial and Operational
Highlights
- Quarterly Production Growth – Achieved average
daily production of 193 boe/d during Q2/24, exceeding Q1/24 by more
than 8%.
- Increasing Operating Netback(1) –
Improved the operating netback to $22.14/boe, driven by a lower operating expense
of $18.18/boe versus a Q1/24
operating expense of $23.60/boe.
- Completed Go-Public Transaction – Closed the
Company's go-public transaction on May 23,
2024, which is intended to provide broader access to capital
and facilitate Westgate's ability to complete M&A
transactions.
- Raised Over $7.0 million of
Equity Financing – Proceeds from additional equity
financing fully fund the 2024 drilling budget and ensure a strong,
debt free balance sheet.
- Significantly Higher Realized Oil
Pricing – The Company improved its realized oil price
at the wellhead during Q2/24 due to optimizing the marketing of
Killam's 29o API
oil.
Q2/24 Financial & Operating Results Summary
|
($'s, unless otherwise
stated)
|
|
Q2-2024
|
Q1-2024
|
Q4-2024
|
Q3-2023
|
|
Production
|
|
|
|
|
|
|
Oil
|
bbl/d
|
86
|
88
|
33
|
36
|
|
Natural gas
|
mcf/d
|
618
|
511
|
437
|
510
|
|
NGLs
|
bbl/d
|
4
|
5
|
4
|
5
|
|
Total
|
boe/d(6:1)
|
193
|
178
|
110
|
126
|
|
Revenue:
|
|
|
|
|
|
|
Crude oil
|
|
713,611
|
615,264
|
272,172
|
322,601
|
|
Natural gas
|
|
43,904
|
85,644
|
81,264
|
106,044
|
|
NGLs
|
|
33,642
|
29,880
|
25,844
|
31,636
|
|
Petroleum, natural gas
and NGL sales
|
|
791,157
|
730,788
|
379,280
|
460,281
|
|
Processing
revenue
|
|
3,789
|
364
|
13,404
|
-
|
|
Total
Revenue(1)
|
|
794,946
|
731,152
|
392,686
|
460,281
|
|
Royalties
|
|
(87,026)
|
(71,888)
|
(66,866)
|
(60,554)
|
|
Operating
expenses
|
|
(319,159)
|
(382,668)
|
(345,366)
|
(281,235)
|
|
Operating Income
(loss)(1)
|
|
388,761
|
276,596
|
(19,548)
|
118,492
|
|
Expenditures on
property and equipment
|
(326,374)
|
(593,204)
|
(2,466,978)
|
(93,800)
|
|
Acquisition of
property and equipment
|
-
|
-
|
(11,683)
|
-
|
|
REALIZED
PRICES(2)
|
|
|
|
|
|
|
Crude oil
|
$/bbl
|
91.68
|
76.54
|
89.36
|
97.91
|
|
Natural gas
|
$/mcf
|
0.78
|
1.84
|
2.02
|
2.26
|
|
NGLs
|
$/bbl
|
83.17
|
68.81
|
66.31
|
70.29
|
|
Realized
Prices
|
$/boe
|
45.06
|
45.06
|
37.43
|
39.82
|
|
Processing
revenue
|
$/boe
|
0.22
|
0.02
|
1.32
|
-
|
|
Royalties
|
$/boe
|
(4.96)
|
(4.43)
|
(6.60)
|
(5.24)
|
|
Royalties as
a percentage of revenue(2)
|
%
|
11 %
|
10 %
|
18 %
|
13 %
|
|
Operating
expenses
|
$/boe
|
(18.18)
|
(23.60)
|
(34.08)
|
(24.33)
|
|
Operating
Netback(1)
|
$/boe
|
22.14
|
17.05
|
(1.93)
|
10.25
|
|
(1) Non-GAAP
financial measure. Refer to the "Non-GAAP Measures" section within
this MD&A for additional information on non-GAAP financial
measures.
(2)
Supplementary financial measure, Refer to the "Supplementary
Measures" section within this MD&A for additional
information.
|
Operations Update
As previously communicated, the Company drilled two horizontal
multi-lateral oil wells in July. These wells are now both on
production and recovering load fluid. The Company expects to be in
a position to provide a production update by the end of
September.
Westgate's Differentiated Strategy
Westgate is focused on the emerging Mannville Stack fairway
located in East-Central Alberta and West Central Saskatchewan. This
fairway is characterized by known accumulations of medium and heavy
oil which are being 'unlocked' via the application of innovative
drilling techniques that utilize multi-lateral horizontal drilling.
Applying these multi-lateral drilling techniques has yielded some
of the strongest oil well economics across Western Canada. The management team and board
of Westgate have extensive experience building and leading
successful energy companies in Canada. The collective successes of the
leadership group share common characteristics: a strategy of
targeting high-quality oil assets with large quantities of
oil-in-place, and driving growth through successful drilling as
well as strategic merger and acquisition opportunities. This proven
blueprint of delivering shareholder value will be foundational to
Westgate's strategy, positioning the Company as one of a select few
pure-play, high-growth, publicly-traded junior oil companies
focused on the Mannville Stack Fairway.
For more information, please visit www.westgateenergy.ca.
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SOURCE Westgate Energy Inc.