(MENAFN- ProactiveInvestors) () a junior oil and gas company reported higher profit and sales in the fourth quarter as production more than doubled.
Net income rose to C$2.3 million or C$0.02 per diluted share in the October-to-December quarter from C$0.6 million or C$0.01 per diluted share in the year-earlier period the Calgary Alberta-based company said in a statement late yesterday.
Oil and natural gas sales almost doubled to C$21.4 million.
The company's cash flow a key indicator of its ability to pay for drilling and new projects jumped to C$10.3 million or C$0.09 per diluted share from C$0.1 million or breakeven per share.
Average daily production more than doubled to 5209 boe/d from 2114 boe/d. The average realized price of oil in the quarter was $75.67 down from $78.48 in the year-earlier period.
Also yesterday Marquee announced that it has entered into a definitive agreement with a Canadian based company for the sale of a static production volume royalty on its Lloydminster property for C$20 million.
The net proceeds from this deal will be used be used to reduce its debt and fund the company's 2015 Michichi capital expenditure program.
Las month Marquee agreed to acquire light oil assets in its core Michichi area for approximately C$14.5 million plus a property swap valued at C$2.0 million.
The deal will add 330 boe/d 3.6 mmboe of proved and probable reserves and 34 sections of land containing Banff light oil rights that are contiguous with Marquee's position in the area. The deal is expected to close on or before March 30.
Marquee's budget for the first half of 2015 is C$5.6 million. The company said it will revisit its capital budget for the remainder of the year in the second quarter to determine appropriate expenditure levels consistent with prevailing commodity prices. Planning for the balance of 2015 and 2016 will be based on strip pricing with prudent capital spending funded by cashflow and priority given to maintaining or reducing current debt levels.
Shares of the Marquee closed down 3.6 percent at C$0.54 in Toronto yesterday. The stock has lost 38 percent of its value over the past year leaving the company with a market value of C$65 million.
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