American Patriot Oil & Gas (ASX: AOW) continues to reap the rewards of its 2018 acquisition spree, reporting growth in both production and revenue for the month of December.
The Melbourne-based company achieved record monthly production revenue of A$387,573, representing a 42% increase on the previous month.
The increased revenue was underpinned by achieving total production of 310 barrels of oil per day for December.
More specifically, American Patriot said the significant monthly growth in revenue was due to the increased oil production versus gas following the closing of the Peak Energy and Magnolia and Burnett acquisitions.
The acquisitions, which were finalised last October, significantly added to the company’s leasehold across Texas and the US Gulf Coast.
“We have recently commenced a capex program on the assets and the positive results are starting to come through in the December results and will generate further momentum in the coming months,” the company said.
American Patriot said it would remain committed to continuing growing production and cash flow.
More production growth tipped
Providing an update on its operational activities, American Patriot said it was undertaking 10 workovers during the next six weeks which is expected to deliver additional production of 20 to 30boepd net to the company.
The program consists of a number of low-cost capex workovers and equipment repair operations on the wells, ranging from US$10,000-30,000 in cost.
Separately, the company is also focused on finalising the settlement of its last remaining asset, Foothill Resources.
Foothills is American Patriot’s biggest acquisition, valued at US$15 million, and is being funded via a combination of debt and equity.
American Patriot first announced it had signed a purchase and sale agreement to acquire 100% of the US conventional oil and gas assets of private company Foothills Resources for US$15 million in July last year.
The company has paid a deposit of US$900,000 to date and executed a US$17 million debt term sheet.
Settlement of the asset will occur once due diligence has been finalised.