Production / Operations
Lotus Creek Exploration Inc. Announces Third Quarter 2025 Operating Results and Operational Update
LTC · Price
Executive Summary
- Lotus Creek reported Q3 2025 production of 1,425 boe/d (874 bbl/d light oil, 201 bbl/d NGLs, 2,100 mcf/d gas) and announced an estimated October 2025 production increase to >2,900 boe/d.
- Capital spending of $18.8 M was deployed in Q3, including two new 5,000 boe/d oil batteries and the completion of a 5,000 boe/d gathering system at Wilson Creek.
- Revised 2025 fiscal guidance remains unchanged for annual and Q4 production volumes but reflects updated commodity weighting and cost assumptions; net debt stands at $6.5 M with an amended credit facility borrowing base of $40 M.
Key Details
- Drilling Activity: 2.0 gross (2.0 net) light‑oil Belly River wells completed in Wilson Creek during Q3 2025; combined average production >1,700 boe/d for October 2025.
- Production Metrics:
- Q3 2025 average: 1,425 boe/d (874 bbl/d oil, 201 bbl/d NGLs, 2,100 mcf/d gas).
- Estimated October 2025 production: >2,900 boe/d (81 % oil & NGLs).
- Capital Expenditure: $18.8 M total Q3 spend; includes drilling, completion of a new 5,000 boe/d oil battery and gathering system at Wilson Creek.
- Liquidity & Debt: Net debt $6.5 M; net‑debt to quarterly funds from operations ratio 0.8×. Credit facility borrowing base increased to $40 M (ATB Financial).
- Adjusted Funds From Operations (FFO): $1.9 M for Q3 2025 (down from $2.0 M in Q2 2025).
- Operational Update:
- In October 2025, inaugural Belly River drilling program completed; total of 4.0 gross wells drilled to date.
- Two additional wells expected on‑stream in December 2025.
- Alberta Energy Regulator approved Tucker Lake facility license; three wells on‑stream mid‑October with sales anticipated in November.
- Revised 2025 Guidance (unchanged volumes, updated assumptions):
| Metric | Previous Guidance | Revised Guidance | Q3 2025 YTD Actual |
|---|---|---|---|
| Annual production (boe/d) | 2,000‑2,400 | 2,000‑2,400 | 1,550 |
| Q4 average production (boe/d) | 3,000‑3,400 | 3,000‑3,400 | N/A |
| Light oil & NGL weighting (%) | 77 | 75 | 75 |
| Heavy oil weighting (%) | 10 | 3 | – |
| Natural gas weighting (%) | 13 | 22 | 25 |
| Royalty rate (%) | 12‑13 | 12‑13 | 14 |
| Operating & transportation cost ($/boe) | 19.5‑20.5 | 21.5‑22.0 | 25.31 |
| G&A expense ($/boe) | 5.0‑5.5 | 6.5‑7.0 | 9.18 |
| Capital & abandonment expenditures (M$) | 43.0 | 43.0 | 31.9 |
- Financial Highlights (Three months ended Sep 30, 2025):
- Adjusted FFO: $1.947 M; cash flow from operations $6.662 M.
- Net loss: $(281) K.
- Total capital & abandonment expenditures: $18.821 M (including $1.662 M exploration & evaluation, $16.898 M property, plant & equipment).
- Realized Prices: Light oil $84.65/bbl; NGLs $39.18/bbl; natural gas $0.54/mcf.
- Operating Netback: $24.48/boe (Q3 2025).
Notable Quotes
- Kevin Johnson, President & CEO: “The Wilson Creek battery establishes certainty of oil egress to deliver profitable organic growth beyond 2025, and we remain confident in our liquidity position through the amended credit facilities.”
- Mitchell Harris, Vice President, Finance & CFO: “Adjusted funds from operations remain strong despite a modest decline quarter‑over‑quarter, supporting continued capital investment and debt repayment capacity.”
More from Lotus Creek Exploration Inc.
Apr 27, 2026 · 17:19