Stonehorse Energy's quarterly performance

Stonehorse Energy (ASX:SHE) has announced its quarterly activities report for the three months ending 30 September 2024. The company, active in oil and gas production, reported strong operational results across its assets in Canada, the United States, and Australia, despite challenges like weaker natural gas prices.

Stonehorse Energy's future plans and outlook

Stonehorse Energy Limited has reported a robust operational performance for the September 2024 quarter, with strong production results from its assets in Canada, the US, and Australia. The company achieved a positive operating cash flow of $290,000 and is focused on expanding its portfolio by exploring new well opportunities, particularly in Canada and the United States. Stonehorse is committed to building a high-quality portfolio of well bore assets that align with its risk appetite and capital availability. As part of its future strategy, the company is in ongoing negotiations to participate in a multi-well opportunity, aiming to finalize an agreement in the fourth quarter of 2024. The company advises caution with forward-looking statements due to potential risks and uncertainties.

Executive insights on quarterly results

The Canadian wells exceeded production forecasts, generating a total of 34,503 barrels of oil equivalent (BOE) against a forecast of 26,576 BOE. Gross production revenue amounted to $682,000, which was 39% below pre-drill forecasts due to weaker natural gas prices and lower than expected output from the Wapiti well. The Caroline well, located in Central Alberta, has been producing since October 19, 2023, contributing significantly to the quarterly production figures. The US portfolio, consisting of 11 operating wells, produced approximately 35,000 BOE for the quarter, aligning with forecasts despite the impact of sustained low natural gas prices. The Jewell well in Oklahoma continues to be a standout performer, delivering approximately 6,000 BOE per month. Stonehorse holds a 25% working interest in the Myall Creek property in the Surat Basin, Queensland. A workover in January 2022 suggested that the Tinowon C reservoir is a candidate for fracture stimulation, with plans to proceed with work in the second quarter of the 2025 calendar year.