Upward Production Trend
The company reported an increase in production from 800 barrels per day to touching the high 900s, with hopes to cross 1,000 steadily. This was achieved by running three rigs at Grayburg-Jackson and one rig at South Justis.
Cost Reductions
G&A costs decreased by $300,000 per quarter compared to the second half of 2024, and LOE costs dropped to $665,000 per month in Q2, down from last year's $718,000 per month average.
Funding Progress
The company is on track with funding efforts, targeting a funding level between $40 million and $50 million. The definitive document stage has been reached, passing due diligence and engineering, which are critical hurdles.
Debt Reduction
Senior debt has been reduced from $28 million to $21 million, and overall liabilities have been reduced by over $4 million, bringing it to about $5.6 million.
Horizontal Drilling Potential
Plans for significant horizontal drilling at Grayburg-Jackson and South Justis fields are underway, with potential production increases to 400-600 barrels per day per well.
Safety Performance
There have been no reportable incidents at the Grayburg-Jackson field since the company took over operations, highlighting strong safety protocols.