Chinook Energy Inc. reported consolidated earnings and production results for the first quarter ended March 31, 2017. For the quarter, the company reported petroleum & natural gas revenues, net of royalties of $6,838,000 against $7,244,000 a year ago. Adjusted funds from operations was $2,036,000 or $0.01 per basic and diluted share against adjusted funds outflow from operations was $2,890,000 or $0.01 per basic and diluted share a year ago. Net income was $10,422,000 or $0.05 per basic and diluted share against loss of $12,775,000 or $0.06 per basic and diluted share a year ago. Capital expenditures was $8,823,000 against $3,026,000 a year ago. Net surplus was $25,622,000 against $20,180,000 a year ago. The increase in adjusted funds from operations resulted from higher commodity benchmark prices, realized gains on a commodity price contract and a lower cash-based cost structure for Montney focused operations. The increase in net income reflects higher commodity prices, a lower cost structure associated with transition to a pure Montney play in addition to a $10.9 million gain on the disposition of non-core properties and a $1.7 million gain on commodity price contracts.

For the quarter, the company reported production of crude oil of 29 bbl/d against 817 bbl/d a year ago. Natural gas liquids was 482 boe/d against 733 boe/d a year ago. Natural gas was 18,022 mcf/d against 25,215 mcf/d a year ago. Average daily production was 3,514 boe/d against 5,753 a year ago.

The company is maintaining previously announced production guidance for 2017. The company expects average production of 4,200 boe/d to 4,300 boe/d, exit production of 6,300 boe/d against 6,500 boe/d a year ago and capital expenditures of $40 million and net surplus as at December 31, 2017 of $2 million.