Epsilon Energy Ltd
For the period ended Mar 31, 2024. Filed May 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 8, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Operating Costs
The following table presents total cost and cost per unit of production (Mcfe), including ad valorem, severance, and production taxes for the three months ended March 31, 2024 and 2023:
| | | | | | | |
|---|---|---|---|---|---|---|
| · · Three months ended March 31, | ||||||
| · 2024 · 2023 | ||||||
| Lease operating costs (net of elimination) | | $1,768,462 | | $1,404,279 | ||
| Gathering system operating costs | | | 552,570 | | | 651,341 |
| | | $2,321,032 | | $2,055,620 | ||
| | | | | | | |
| Upstream operating costs—Total $/Mcfe | | | 0.89 | | | 0.57 |
| Gathering system operating costs $/Mcf | | | 0.16 | | | 0.18 |
Operating costs include the effects of elimination entries to remove the gathering fees paid to Epsilon’s ownership in the gathering system.
Upstream operating costs consist of lease operating expenses necessary to extract natural gas and oil, including gathering and treating the natural gas and oil to ready it for sale. For the three months ended March 31, 2024 these costs increased by $0.4 million, or 26%, over the same period in 2023. The increase is primarily due to the additional wells in the Permian Basin.
Gathering system operating costs consist primarily of rental payments for the natural gas fueled compression units and overhead fees due to the system’s operator. For the three months ended March 31, 2024, gathering system operating costs decreased by $0.1 million, or 15% from the same period in 2023. This decrease is primarily due to lower anchor shipper volumes gathered through the system.
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