Oklahoma City’s Chaparral Energy reported third quarter losses of more than $19 million but increased total revenues of $76 million.
The company also reported its STACK production grew by 12 percent compared to the second quarter and by 34 percent in the past year.
The company said its net loss was $19.1 million. The increase of total revenues to $76 million compared to $74 million from the previous quarter.
“The third quarter was a historic one for Chaparral as we essentially completed our transition to a pure-play STACK operator with the signing of a definitive agreement for the sale of our North Burbank and Texas Panhandle EOR assets,” said Earl Reynolds, CEO at Chaparral.
He said proceeds from the sale will be used to repay the outstanding $149.2 million balance from the term loan and the balance will go toward repayment of the firm’s credit facility.
“This focus on debt reduction demonstrates our commitment to maintaining a strong balance sheet and increasing our overall liquidity, both of which are critical in a low-price environment,” added Reynolds.
In the third quarter, Chaparral focused the majority of its operated capital in the STACK and brought 8 new STACK wells on production. Four were in the Meramec, three in the Osage and one in the Oswego.
The company produced 24.5 MBoe/d during the quarter and 55 percent was oil, which represented a three percent increase in the past year. In the third quarter of 2016, production was 23.8 MBoe/d.
“We continue to see outstanding growth in our STACK program,” said Reynolds. “We increased our daily production by almost 35 percent compared to the third quarter of 2016.”