Pinecrest Energy Inc (CVE:PRY) (PINK:PNCGF) stock price hit a new 3 month low on Wednesday despite reassuring quarterly results as traders were expecting a more stellar performance.
The sell-off was a reaction to the company’s latest quarterly results, which clearly didn’t fall in line with the expectations, despite improvements in financial performance. The main factor indicing a bearish mood is a flat production rate compared to the end of 2011, when the company was pumping 3.5 thousand boe per day. On the other hand the operational financials were rather solid.
Pinecrest announced to have recorded a net income of 5.95 million Canadian dollars over the first quarter of the year, which is significantly better than the $326.6 thousand loss recorded over the same period in 2011.
There was a sixfold increase in funds flow from operations to $20.3 million. Petroleum and natural gas sales jumped to $28.2 million, from the $6.1 million recorded last year. During the quarter the company had an average daily production of 3.36 thousand barrels of oil equivalent, so there’s still a lot of space for improvement given their target is 5 to 5.2 thousand boe per day by the end of the year.
PRY stock price lost 4.85% during the last trading session under a trading volume of 3.6 million which was significantly above the average turnover of 1.4 million.
