Phoenix Global Resources PLC (LON: PGR) have seen their shares rally on Monday morning after the firm gave shareholders a positive update.
Phoenix Global Resources plc is an upstream oil and gas company offering its investors an opportunity to invest directly into Argentina’s Vaca Muerta shale formation and other unconventional resources.
Shares in Phoenix rallied 11.04% to 19p on the announcement. 9/12/19 15:20BST.
The firm said that production was increased in the third quarter of 2019, but a fall in oil prices caused revenues to decline.
For the three months ended September 30, Argentina-focused oil & gas firm Phoenix Global posted total production of 10,830 barrels of oil equivalent per day, up 13% from 9,621 barrels in the second quarter.
However, a 14% decline in average realised prices to $38.9 per barrel of oil equivalent from $45.1 caused revenue to drop 6.6% to $34.1 million from $36.5 million.
At the start of November, Phoenix completed the sale of its non core partner operated conventional Santa Cruz Sur assets.
Chief Operating Officer Javier Vallesi said: “Testing continues at Mata Mora, the results of which will be used to help define the future drilling and the overall development plan for the block. At Puesto Rojas, the vertical Agrio unconventional wells were drilled and completed under budget and are now on flowback. Consistent with our operational objectives, we continue to build our organisational and execution capability as we begin the appraisal and development of our unconventional concessions”.
“The sale of our Santa Cruz assets in November further focuses our resources on the company’s significant unconventional acreage consistent with our stated objective to become a leading, Argentina-focused, unconventional development and production company,” Vallesi added.
The update comes at a good time for shareholders of Phoenix Global Resources, and amid a time of volatile oil prices hit by external markets shocks, shareholders should remain optimistic for the firm.
It may be the case that once the global economy has stabilized over the next few months, that shareholders will see the full potential of Phoenix Global Resources.