By Mary de Wet
Empire Petroleum has announced that it has witnessed an improvement in commodity pricing in the current quarter. Despite depressed prices in the second quarter, the company is pleased to report a material increase in pricing during the third quarter.
President and Chief Executive, Mike Morrisett, commented on the positive outlook, stating that the effects of their development campaign on their North Dakota assets are starting to show. These efforts will continue to expand in the second half of 2023.
Second Quarter Performance
In the second quarter, net production slightly decreased from the previous year, falling to 194,306 barrels of oil equivalent from 196,412 barrels. However, it is worth noting that oil and natural gas production increased compared to the second quarter of 2022, despite a decline in natural gas liquids output by 20%.
According to the Tulsa-based oil and gas company, net sales for the second quarter included 1,411 barrels of oil per day, 337 barrels of NGLs per day, and 2,322 thousand cubic feet per day (Mcf/d), or 387 Boe/d, of natural gas. Comparatively, net sales for the first quarter of 2023 consisted of 1,336 barrels of oil per day, 442 barrels of NGLs per day, and 2,569 thousand cubic feet per day (Mcf/d), or 428 Boe/d, of natural gas.
The sequential increase in oil sales volumes can be attributed to the higher production from Empire's assets in North Dakota. This increase is a direct result of the company's targeted capital development program initiated in the latter part of 2022.
The average price per barrel of oil equivalent for Empire Petroleum was $50.22, marking a 37% decrease from the year-ago quarter.