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Operating Expense
Total operating expense of $4.8 million ($5.51 per boe) was 28% higher than the fourth quarter last year (4% higher on a per boe basis). The increase correlates to the increase in working interest production volumes, as we do not incur operating expense on our royalty interest production.
GROSS REVENUE BY PRODUCT Three Months Ended Twelve Months Ended December 31 December 31 ----------------------------------------------------($000s) 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------Royalty Interest Oil 20,503 25,419 -19% 87,721 85,231 3% NGL 1,512 2,014 -25% 6,887 6,495 6% Natural gas 3,831 3,402 13% 10,501 15,581 -33% Other (1) 556 808 -31% 2,525 3,206 -21%---------------------------------------------------------------------------- Total royalty interest revenue 26,402 31,643 -17% 107,634 110,513 -3%----------------------------------------------------------------------------Working Interest Oil 17,801 11,847 50% 55,577 40,786 36% NGL 476 655 -27% 1,870 2,100 -11% Natural gas 978 922 6% 2,640 3,447 -23% Other (1) 137 237 -42% 413 1,064 -61%---------------------------------------------------------------------------- Total working interest revenue 19,392 13,661 42% 60,500 47,397 28%----------------------------------------------------------------------------Total Oil 38,304 37,266 3% 143,298 126,017 14% NGL 1,988 2,669 -26% 8,757 8,595 2% Natural gas 4,809 4,324 11% 13,141 19,028 -31% Other (1) 693 1,045 -34% 2,938 4,270 -31%---------------------------------------------------------------------------- Total gross revenue 45,794 45,304 1% 168,134 157,910 6%--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Other includes potash, sulphur, lease rentals, and other revenue for royalty interest, and processing fees, interest, and other revenue for working interest.
Fourth Quarter Production
Average production in the fourth quarter of 2012 was 1,737 boe per day higher than last year. Oil and natural gas liquids (NGL) production rose 22%, and natural gas production rose 26%.
-- Royalty production volumes were 594 boe per day higher than last year, mainly as a result of royalty interests acquired during 2012 (which were 90% natural gas) and prior period adjustments due to the ongoing work of our audit team. Natural gas production was up 30%, while oil and NGL production declined 2%.-- Working interest production volumes were 1,143 boe per day higher than last year as a result of high activity levels in 2012 and flush production from newly completed wells in southeast Saskatchewan. Oil and NGL production was up 69% and natural gas production was up 12%.AVERAGE DAILY PRODUCTION Royalty Interest Working Interest Total ----------------------------------------------------Three months ended December 31 2012 2011 2012 2011 2012 2011---------------------------------------------------------------------------- Oil (bbls/d) 3,190 3,262 2,561 1,461 5,751 4,723 NGL (bbls/d) 267 252 88 106 355 358---------------------------------------------------------------------------- Total oil and NGL (bbls/d) 3,457 3,514 2,649 1,567 6,106 5,081 Natural gas (Mcf/d) 17,105 13,198 3,315 2,952 20,420 16,150 Oil equivalent (boe/d) 6,308 5,714 3,202 2,059 9,510 7,773--------------------------------------------------------------------------------------------------------------------------------------------------------
