Regular Motley Fool readers will note the love/hate affair we've had with Maverick Drilling and Exploration Ltd (ASX: MAD). It eventuated in us advising readers to sell Maverick in May 2013, when the share price was around 60 cents.
But now could be the perfect time to have another closer look at the company. The arrival of new CEO Mike Yeager, previously head of BHP Billiton Limited's (ASX: BHP) petroleum division, has set the small oil producer on a new path.
In the company's June quarterly report released today, the company announced that it had produced an average of 1,213 barrels of oil per day (boepd), down from 1,248 boepd in the March quarter.
Cash receipts from oil sales were US$7.2 million, while the company spent US$7.5 million on oil and gas development. 28 wells were drilled during the quarter, with 20 wells put online and producing.
As previously announced, Maverick plans to focus on its Blue Ridge asset and improve it to a cash positive position, with Mr Yeager reporting that the company is taking significant costs out of the operations. Boling and Nash field leases will be allowed to lapse, and Maverick says it expects to provide the market with an update on its reserves and resources in the coming weeks.
With US$45.6 million in cash on its books at the end of June and plans to explore additional financing options, Mr Yeager says the company is well positioned to move to a multi asset company, with diversified cash flows.
Maverick began its life as a contract driller, but is moving more towards become a true oil and gas exploration and production company. Given the new focus, Maverick could be one stock to keep an eye on. Other ASX-listed oil and gas producers focused on the booming US shale regions include Sundance Energy Australia Limited (ASX: SEA), AWE Limited (ASX: AWE) and Antares Energy Limited (ASX: AZZ).
If you're looking for more options in the oil and gas sector, you won't want to miss our special report showcasing 3 companies in the sector.
