Phoenix Global Resources (LON:PGR) reported a slip in production in its first quarter, sending shares down in early trading.

The group said it had relinquished a drilling concession and switched its focus to new development drilling at another, sending first-quarter output down to 10,749 barrels of oil equivalent per day. This is down from 11,537 boepd in the fourth quarter of 2017.

The group reported an average Q1 production of 10,749 boepd, consistent with full year 2017 production, with operating costs of US$17.10 per barrel of oil equivalent.

Anuj Sharma, CEO said:

“Year to date we have made great progress in securing key unconventional acreage and operatorship positions giving us control over the work programmes and capital spend.

“Looking forward we have an exciting 2018 drilling campaign, focused on the appraisal of Phoenix’s significant unconventional Vaca Muerta acreage at Puesto Rojas and Mata Mora, including our first horizontal wells.”

Shares in Phoenix Global (LON:PGR) are currently trading down 1.78 percent at 22.10 (0845GMT).