(Alliance News) - Phoenix Global Resources PLC on Monday said production was higher in the third quarter of 2019, but a fall in oil prices caused revenue to decline.
Shares in Phoenix Global were up 11% at 19.52 pence in London in afternoon trading.
For the three months ended September 30, Argentina-focused oil & gas firm Phoenix Global posted total production of 10,830 barrels of oil equivalent per day, up 13% from 9,621 barrels in the second quarter.
However, a 14% decline in average realised prices to USD38.9 per barrel of oil equivalent from USD45.1 caused revenue to drop 6.6% to USD34.1 million from USD36.5 million.
In November, following the end of the third quarter, Phoenix Global completed the sale of its non-core, partner operated conventional Santa Cruz Sur assets. Going forward, the company is planning to drill an initial long-lateral unconventional well as its Corralera project in the first half of 2020, while work continues on its application for an unconventional development concession at Mata Mora in 2020.
Chief Operating Officer Javier Vallesi said: "Testing continues at Mata Mora, the results of which will be used to help define the future drilling and the overall development plan for the block. At Puesto Rojas, the vertical Agrio unconventional wells were drilled and completed under budget and are now on flowback. Consistent with our operational objectives, we continue to build our organisational and execution capability as we begin the appraisal and development of our unconventional concessions".
"The sale of our Santa Cruz assets in November further focuses our resources on the company's significant unconventional acreage consistent with our stated objective to become a leading, Argentina-focused, unconventional development and production company," Vallesi added.
By Anna Farley; annafarley@alliancenews.com
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