This consolidated financial report of Eon NRG Limited (ASX:E2E) (OTCMKTS:ICRMF) ("Eon" or "the Company") covers the twelve months of operations for the year ended 31 December.

Oil sales volume increased in 2018 due to the addition of the Borie Field which was acquired in Q3-17. Gas sales volumes have decreased in 2018 compared to the prior year due to natural decline. Gas production and sales volumes in 2017 were higher due to a number of recompletions that were carried out in Q4-16. A successful gas well recompletion was carried out at the Silvertip Field in Q1-18 (35-28F well) which produced 121 MMcf of gas (Gross) in 2018. The volume of NGL sales declined in 2018 in line with lower gas production.

Revenue increases have resulted in part from the increase in oil production and also from the impact of higher average oil prices (2018: $65.14/barrel v 2017: $48.45/barrel). Average gas and NGL prices remained relatively similar from 2017 to 2018.

Production expenses increased in 2018 as a result of adding the Borie Field to the overall operating costs (acquired in December 2017). The fields remained very profitable with a gross profit margin of 48% in 2018 (before amortisation and depreciation costs).

Amortisation expenses have increased as a result of the California Fields being carried as Assets Held For sale in 2017 which resulted in amortisation being suspended. However, on reclassifying these properties to non-current assets, the suspended amortisation from 2017 was accrued in 2018 to align the book value with the depletion of the oil reserves for that period.

Gross profit of the Company at a field level remains strong with field operating profit before amortisation and depreciation of $2.4 million in 2018 (2017: $1.9 million).

During 2018, $310,000 of principal was repaid against the ANB Bank term loan (now fully repaid) and line of credit ("LOC") facilities. The LOC is due to mature on 1 July 2019. Subject to approval by ANB Bank, this facility will be rolled over on maturity as it has been on two previous occasions. The Company has no reason to believe that it will not be renewed on expiry of the current term. Because the maturity date of the LOC is less than 12 months from the balance date, the loan is required to be classified as a current liability under accounting standards.

The Company purchased 15,000 acres of leases in the Powder River Basin in Q3-18 for $181,000. Eon also acquired load claims over potential Cobalt assets in Nevada which cost $71,000. These investments have been classified as exploration assets.

Eon reported a surplus cash flow for the year from Operating activities of $746,000. Overall cash decreased by $49,600 for the year after Investing and Financing activities.

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About EON NRG Ltd

EON NRG Ltd (ASX:E2E) is an USA onshore focused energy exploration and production company. The Company's growth path is through drilling of high impact oil exploration wells, supported by its 100% owned and operated long life oil and gas production assets and associated cashflow. The company also has a battery minerals division with prospective leases in Nevada which are at the early stages of low-cost exploration.

   

Contact

Australia -
Simon Adams, CFO
Email: sadams@i-og.net
Phone: +61-8-6144-0590
Mobile : +61-439-845-435

USA -
John Whisler, Managing Director
Email: jwhisler@i-og.net
Phone: +1-720-763-3183

Website: www.eonnrg.com
Twitter: @EonNRG



Link: Preliminary Final Report


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