BIRCHCLIFF ENERG NEW (OTCMKTS:BIREF) reversed the short term decline with a sharp gain of 5.97% in the last trading session with the volume of the day surging to 132,000, much higher than the daily average of 30,000 of this illiquid stock. The stock has been in a huge bear market and from the long term perspective; no bottoming signs are visible yet. Short term corrective bounces can be expected but severe selling pressure at the higher levels can be expected too. If the decline continues, then in the next few months a retest of $3 can’t be ruled out.
Improved market conditions have helped many companies regained their lost positions in the market. BIRCHCLIFF ENERG NEW (OTCMKTS:BIREF) among many has announced financial and operational results for the recently concluded 2Q2015.
As per the reports, the average production for the quarter rose to 38,489 Boe per day; a level that was never achieved before. Apart from this, Birchcliff also announced that its operating cost came down to a record $4.53 per boe level in the second quarter.
These numbers are good enough for the company to uplift its expected production in the fourth quarter by at least 2000 boe per day. After this alteration, the new expected average quarterly production for the 4Q2015 is 41,000 to 42,000 boe per day. The management of the company is delighted to announce these numbers and hopes that the production will continue to improve, and the cost will continue to reduce in the coming months.
Earlier Birchcliff has forecasted to spend a total of $266.7 million in 2015 in the form of capital expenditure; however, now it has brought down this number to $250 million. Birchcliff managed to drill total 25 wells until the report was prepared. It plans to increase this number by a great margin before the end of the year.
Jeff Tonken, Chief Executive Officer & President, Birchcliff, said that the second quarter proved to be favorable in many aspects, including production and cost. It’s because of stronger performance of Montney/Doig horizontal natural gas wells of the company that it could raise the average production for the quarter by 23 percent.
Birchcliff reported the total funds flow of $45.8 million in the quarter compared to last year’s $75.4 million. When it comes to general and administrative cost, the company managed to bring down the figure to $1.50 per boe compared to $1.91 in 2Q2014. Total capital expenditure for the quarter were recorded as $65 million.
Birchcliff hopes to report better financial results in the next quarter.
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