Unconventionals producer BNK Petroleum increased production but still made a loss in the second quarter of 2015.
In the three months to June, BNK made a loss of $3.7million compared to net income of $199k in the same period in 2014.
Announcing its six-month results the Vancouver-registered company said average production for the second quarter of 2015 was 1,490 barrels of oil per day, an increase of 49% compared to second quarter 2014 production.
This was largely due to the completion of the Nickel Hill 36-3H well and the remaining portion of the Emery 17-1H well during the second quarter.
Expenses on a per barrel basis decreased by 34% for the second quarter of 2015 compared to the same period last year, due to cost cutting efforts initiated at the beginning of the year.
Revenue, net of royalties was $4million for second quarter of 2015 compared to $6million last year due to lower oil prices.
Capital expenditures decreased by 81% to $4.2 million primarily due to the prior year drilling and completion of the Gapowo well in Poland.
Chief executive Wolf Regener, said: “The company’s existing production continues to perform well. Costs reductions helped the company to maintain positive cash flow from operations of $1.6million for the second quarter of 2015 despite a decrease in average prices of 52% compared to the prior year second quarter.”
BNK has operations in the US, Poland and Spain.
