We’re back baby, say oil juniors as prices underpin strong April production
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Strong oil prices are underpinning strong April performances among ASX oil juniors.
Bass Oil (ASX:BAS) says it’s getting prices not seen since 2014, and Fremont Petroleum (ASX:FPL) says strong prices mean it’s now cash flow positive.
Oil prices and therefore the attention the sector is receiving have been rising since July last year.
Prices rallied to multi-year highs on Wednesday, a day after President Donald Trump announced plans to withdraw the US from the Iran nuclear deal, but analysts say the news had largely been priced in already.
In April, Bass’s Indonesian joint venture sold 17,958 barrels of oil at an average price of $US65.57 per barrel. Production for the month stood at 16,994 barrels.
That price was 9.6 per cent higher than in March.
Fremont said it produced 3336 barrels in April in total from two fields in Colorado and Kentucky — up 40 per cent on March after work-overs of producing wells bought some wells back on stream.
“As we grow production, cash flow will continue to strengthen. We are now cash flow positive and we want to enhance this position by extracting maximum production from our fields,” president and CEO Timothy Hart said.
Where Fremont is bringing old wells back up to scratch, Bass is looking for acquisitions.
It’s scouting onshore Indonesian oil projects that are close to existing production infrastructure and expects to make a purchase this year.
Bass shares were flat at 0.4c and Fremont’s ere up 12.5 per cent to 0.9c.
Here’s a table showing how ASX-listed oil juniors have performed so far this year (Jan-May). Swipe or scroll for more data: