Canadian-based, South American-focused oil and gas company, Frontera Energy, reported a 42.7% year-on-year decline in its hydrocarbons production during the second quarter of 2020.
Total oil and gas production fell to 42,597 barrels of oil equivalent per day (Boe/d), from 74,385 Boe/d in 2Q19, Kallanish Energy learns from Frontera’s earnings report.
The volume reflects the company’s response to the Covid-19 crisis, which included voluntary shut-ins of higher cost production, the impact of declines from the curtailed capital program and also a force majeure at its operation in Peru.
The Peruvian onshore Block 192 field was offline for the entire quarter, following a production of 5,385 Boe/d in the previous quarter. As soon as the force majeure is lifted by the Peruvian authorities, Frontera will have a six-month extension on its service contract on the field.
The company produced 1,649 Boe/d of natural gas in the quarter – which is 32.8% lower than the same period last year, and 19% lower than 1Q20. The entire production came from Colombia.
While the combined oil and gas sales revenue plunged 79.1% y-o-y to $81.70 million, the gas sales under contracts were down 22.4%. Revenue from gas sales, all of which based in Colombia, reached $3.12 million, compared to $4.02 million in 2Q19.
Frontera reported a Q2 net loss of $68 million versus a $237 million profit a year earlier.
This post appeared first on Kallanish Energy News.