Traverse Energy Ltd. reported unaudited earnings and production results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported petroleum and natural gas revenue of $1,778,000 against $2,615,000 a year ago. Cash from operating activities was $481,000 against $1,389,000 a year ago. Adjusted funds flow were $420,000 or $0.00 per basic and diluted share against $1,147,000 or $0.01 per basic and diluted share a year ago. Net loss was $7,856,000 or $0.08 per basic and diluted share against $1,130,000 or $0.01 per basic and diluted share a year ago. Capital expenditures were $1,164,000 against $1,202,000 a year ago. Adjusted funds flow decreased 32% from the first quarter of 2018 due mainly to decreased production and the impact of a fixed physical oil delivery contract which expired June 30, 2018. Capital expenditures in the second quarter related mainly to land acquisition and production testing and facility construction at Chigwell.

For the six months, the company reported petroleum and natural gas revenue of $3,758,000 against $5,641,000 a year ago. Cash from operating activities was $1,624,000 against $2,492,000 a year ago. Adjusted funds flow were $1,033,000 or $0.01 per basic and diluted share against $2,588,000 or $0.03 per basic and diluted share a year ago. Net loss was $8,303,000 or $0.08 per basic and diluted share against $1,502,000 or $0.02 per basic and diluted share a year ago. Capital expenditures were $1,989,000 against $5,092,000 a year ago.

For the quarter, the company reported natural gas production of 1,551 Mcf per day against 2,300 Mcf per day a year ago. Oil and NGL production was 262 bbls per day against 384 bbls per day a year ago. Total production was 521 BOE per day against 767 BOE per day a year ago. Production declined as no new production has been added in 2018 and decreased natural gas pricing resulted in the shut-in of natural gas wells during the quarter.

For the six months, the company reported natural gas production of 1,899 Mcf per day against 2,363 Mcf per day a year ago. Oil and NGL production was 280 bbls per day against 425 bbls per day a year ago. Total production was 596 BOE per day against 819 BOE per day a year ago.

The company's 2018 capital budget has currently been reduced to $3.0 million while the assessment of assets and evaluation of the Chigwell Duvernay well continues. The remaining capital budget for 2018 will be financed with adjusted funds flow.