Canadian Overseas Petroleum Ltd on Wednesday said petroleum sales increased in its latest quarter due to rising oil prices, but that crude oil sales fell due to repair work at multiple wells.

The oil and gas exploration, production and development company said its working interest crude oil sales averaged 1,029 barrels per day in the third quarter of 2023, down from 1,193 barrels in the second.

Canadian Overseas said production was reduced mainly because of downtime at ‘high productivity wells’, with field work being conducted to inspect and repair roads and equipment ‘to prepare the upgraded gas gathering system for the resumption of enriched natural gas liquid injection’.

The Wyoming, US-focused company commenced increased enriched NGL injection in mid-October, and is ‘closely’ monitoring the effects on production.

Canadian Overseas said petroleum sales totalled $5.8 million in the third quarter, up from $5.6 million in the second. This was primarily due to the realised sales price of oil rising to $78.34 per barrel from $71.75, but partially offset by the reduced production.

The company also incurred a net realised hedging loss of $2.2 million on crude oil and butane hedge contracts during the period, up from no such losses throughout the first half of the year.

Operating netback decreased slightly to $20.83 per barrel before the hedging loss, from $20.93 in the second quarter. Canadian also incurred one-off costs related to repairs and maintenance due to ‘severe and abnormal weather conditions’ in the first half.

Canadian Overseas had a cash balance of $2.2 million at September 30, down from $4.0 million at December 31.

Shares in Canadian Overseas Petroleum were down 3.7% at 1.69 pence on Wednesday afternoon in London.

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