The company reported a significant financial recovery for the second quarter of 2026, swinging from a previous loss to a net income of $9.2 million.. This turnaround was driven by a sharp increase in production volumes and a favorable spike in global energy prices.
The $90.24 Oil Price and the $69.2 Million Revenue Surge
The company's revenue from oil and natural gas sales climbed to $69.2 million in Q2 2026, a massive leap from the $22.2 million recorded during the same period in 2025. According to the report, this growth was underpinned by an average crude oil price of $90.24 per barrel, compared to $67.26 per barrel the previous year. Natural gas also saw a price increase, averaging $4.99 per thousand cubic feet against $3.45 in 2025.
This revenue spike reflects a broader trend of volatility and recovery in the enegy sector, where firms with scaled-up production are capturing significant upside from price swings. For the company, the impact was immediate: net cash and funds flow from operating activities rose to $22.5 million, up from just $5.6 million in the prior year. This shift allowed the company to move from a working capital deficit of $71.8 million at the end of 2025 to a positive position of $63.4 million by the end of the current period.
Liminar's Influence and the $30 Million Rights Offering
To further stabilize its finances, the company completed a rights offering on July 16, 2026, issuing 240 million common shares at $0.05 each... This move raised $30 million in gross proceeds, which the company immediately used to settle a $29.9 million working capital loan and $0.1 million in accrued interest owed to Liminar. As the report says, the total number of common shares outstanding now exceeds 312 million .
The relationship with Liminar remains central to the company's corporate structure. The source claims that roughly 900 percent of the outstanding shares remain under Liminar's control—a figure that appears to be a reporting error in the original disclosure but underscores the dominant role Liminar plays in the company's capitalization and debt management .
Tordillo's 4,213 Barrels and the $54 Million Capex Plan
Operational growth was led by the Tordillo concession, which averaged 4,213 barrels of oil per day. Other contributing assets included Pilar Clavada with 1,675 barrels and Koluel Kaike with 891 barrels. Total average daily production reached 9,158 barrels of oil equivalent, more than doubling the 4,083 barrels produced in the same quarter of 2025.
To maintain this momentum, the company has budgeted approximately $54 million in capital spending for the 2026 fiscal year. The bulk of this investment is earmarked for the Chubut Concessions, where the company plans a drilling campaign of five wells alongside facility improvements and workovers. Additional funds are allocated to three well workovers in the Santa Cruz Concessions and various fees associated with the province of Tierra del Fuego.
The August 16 Deadline for Tierra del Fuego Concessions
Despite the financial gains, the company faces an immediate regulatory cliff. The Angostura concession is set to close on August 16, 2026, followed by the Las Violetas and Rio Cullen concessions on August 17, 2026. The company is currently in negotiations with the Province of Tierra del Fuego to secure extensions for these assets, though the terms of these agreements remain unconfirmed.
The urgency of these deadlines stands in contrast to the company's success in other regions ; for instance, the Province of Mendoza granted a one-year extension on the CLL Permit until May 18, 2027. However, several critical questions remain: will the Province of Tierra del Fuego grant the extensions, and at what cost to the company's new cash reserves? Furthermore, the report does not specify the terms of the $13.2 million in discounted promissory notes issued following the month-end, leaving the exact nature of the company's short-term debt obligations unclear.
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