Chinook Energy Inc. reported consolidated operating and earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported adjusted funds from operations was $1,195,000 or $0.01 per basic and diluted share compared to outflow of $1,721,000 or $0.01 per basic and diluted share in 2016. Net loss from continuing operations was $2,253,000 or $0.01 per basic and diluted share compared to net loss from continuing operations of $12,520,000 or $0.06 per basic and diluted share in 2016. This improvement reflects higher commodity prices, a lower cost structure associated with transition to a pure Montney play in addition to a $0.6 million gain on commodity price contracts. Capital expenditure was $8,235,000 compared to $1,347,000 a year ago. Petroleum and natural gas revenues, net of royalties were $6,583,000 compared to $7,550,000 a year ago.

For the six months, the company reported net income of $8,169,000 or $0.04 per basic and diluted share compared to net loss of $25,295,000 or $0.12 per basic and diluted share in 2016. Adjusted funds from operations was $3,231,000 or $0.01 per basic and diluted share compared to outflow of $4,611,000 or $0.02 per basic and diluted share in 2016. Capital expenditure was $17,058,000 compared to $4,373,000 a year ago. Petroleum and natural gas revenues, net of royalties were $13,421,000 compared to $14,794,000 a year ago.

For the quarter, the company reported natural gas liquids boe/d production of 441 boe/d compared to 604 boe/d a year ago. Natural gas production was 19,065 mcf/d compared to 22,776 mcf/d a year ago. Crude oil production was 19 bbl/d compared to 769 bbl/d a year ago. Average daily production was 3,638 boe/d compared to 5,169 boe/d a year ago. Production during the second quarter of 2017 averaged 3,638 boe/d, an increase of 3.5% from the previous quarter primarily due to additional production from three Birley/Umbach wells which were drilled in the fourth quarter of 2016.

For the six months, the company reported crude oil production of 24 bbl/d compared to 793 bbl/d a year ago. Natural gas production was 18,546 mcf/d compared to 23,995 mcf/d a year ago. Average daily production was 3,576 boe/d compared to 5,461 boe/d a year ago. Natural gas liquids boe/d production was 461 boe/d compared to 669 boe/d a year ago.

The company provides its 2017 guidance. For the period, the company expects its average production to 4,200 boe/d to 4,300 boe/d. Exit production expected to be 6,300 boe/d to 6,500 boe/d. Capital expenditures expected to be $40 million for the year.