US-based independent energy company Milagro Oil & Gas has posted a net loss of $21.5m for the third quarter, compared to net income of $25m for the same period last year.
Net income decreased by $2.9m owing to lower natural gas sales and higher operating costs. Milagro’s revenues were $19.8m, a 66% fall compared to $58m revenues for the same period in last year.
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However, the company reported a 13% volume increase in oil and natural gas liquids production to 3 million barrels of oil per day for the third quarter of 2012, compared to the same period last year.
The firm said that oil and natural gas liquids now account for 44% of its current daily production, compared to 40% on 1 January 2012.
In Q3 Milagro spent $13.7m in to support business plan, of which $8m was spent on drilling and completion activities, $4.3m on workover and recompletion activities, $100,000 on lease acquisitions, $700,000 on plug and abandonment costs and $600,000 on capital expenditures.
The company drilled ten wells, including five wells drilled at the Magnet Withers Field in Texas, two high-yield gas wells in the Barnett Shale and one carry over well from 2011 in the Barnett Shale.
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By GlobalDataIn 2012, the two Barnett Shale high-yield gas wells drilled had an initial production rate of 1.5 million cubic feet per day and 1.9 million cubic feet per day, while the 2011 carryover well had an initial production rate of 3.2 million cubic feet per day.
Milagro plans to participate in five additional wells before the end of the year.
