Emerald Oil (EOX) shares fell in Friday’s pre-market session after the oil-and-gas explorer and producer late Thursday cut its guidance for Q4 production for the second time in as many months while reducing its 2015 development plan, and said its chief operating officer resigned.
EOX was down 11% in recent pre-market trading at $1.15, near its 52-week low of $1.25.
For Q4, the company now expects average production of 3,300 barrels of oil equipvalent per day. Last month, the company had the guidance by about 6.5% to 4,300 BOEPD. In lowering the guidance, the company cited downtime related to the acceleration of its replacement of electric submersible pumps with lower-operating-cost rod pumps, which it did to further reduce lease operating expenses.
For 2015, the company is now targeting average production of 4,200 to 4,500 BOEPD, for year-over-year growth of 25% to 34%. Previously, it had targeted 5,425 to 5,800 BOEPD, which would have given year-over-year growth of 50% to 60%.
The company cited “the current commodity price environment” as it made the reduction, noting it released two of three operated rigs in the last two weeks, so the updated 2015 guidance is now based upon a variable one-rig program in 2015.
Emerald noted it plans to drill and complete five wells over the next 12 months, and four of these wells will be spud between now and the end of the Q1 2015, while the fifth well will be spud in the second half of 2015. “As Emerald has a backlog of permits in hand, additional wells will be added to the 2015 development schedule if commodity prices improve,” it added.
Meanwhile, the company named Noble Energy’s Mike Dickinson as its new operating chief, effective Jan. 1. Dickinson succeeds David Veltri, who the company said resigned from his position as an officer of Emerald Oil.
Dickinson held operations and engineering positions at Noble Energy for the past 10 years and most recently served as the director of operations of the DJ Basin.