Stonehorse Energy Reports A$460k Revenue and A$4.86m Cash in Q4 2025
Stonehorse Energy Limited reported steady operational performance in Q4 2025, driven by strong production from a new Drumheller well in Alberta and maintaining a solid cash position of A$4.86 million.
- Drumheller well production exceeds forecasts, contributing to oil-weighted growth
- Quarterly revenue of A$460k from Canadian and US oil and gas assets
- Operating expenses reduced through personnel restructuring and well maintenance
- Canadian production totals approximately 24,500 barrels of oil equivalent (BOE)
- Cash reserves remain robust at nearly A$4.86 million
Steady Quarter for Stonehorse Energy
Stonehorse Energy Limited (ASX – SHE) has delivered a consistent quarterly performance for the three months ending 31 December 2025, underscoring its focus on oil-weighted assets in North America. The company’s consolidated operations across Canada, the United States, and Australia remained stable, with no significant disruptions reported.
Revenue for the quarter reached A$460,000, primarily generated from producing wells in Canada and the US. This reflects Stonehorse’s strategic emphasis on partnering with competent operators in the Western Canadian Sedimentary Basin, where it continues to pursue oil-weighted drilling and work-over opportunities.
Drumheller Well Outperforms Expectations
A highlight of the quarter was the successful farm-in and production from a new well in the Drumheller area of Alberta. Commencing production in early November, the Drumheller well delivered 5,800 barrels of oil equivalent (BOE) during the quarter, with a strong oil component of 76%. Its average daily production rate of 130 BOE surpassed initial forecasts, contributing significantly to the company’s overall output.
Alongside Drumheller, the Caroline well maintained steady production at 17,808 BOE for the quarter, while the Wapiti well experienced downtime due to paraffin build-up, requiring an unplanned clean-out. Despite this, total Canadian production reached approximately 24,500 BOE, or 266 BOE per day.
Operational Efficiency and Cost Management
Stonehorse has successfully reduced operating expenses through personnel changes and overhead reductions, aligning its cost base with current operational demands. The US portfolio, consisting of mature producing assets, generated around 19,205 BOE net for the quarter, maintaining consistent cost levels. Meanwhile, the company’s Australian operations continue to focus on the Surat Basin asset, with workover activities pending further data review.
Capital expenditure for the quarter included A$1.5 million on production and development activities, with minimal exploration spend of A$10,000, reflecting a disciplined approach to capital allocation.
Financial Position and Outlook
Stonehorse ended the quarter with a healthy cash balance of approximately A$4.86 million, providing a solid financial foundation for ongoing operations and future development opportunities. The company’s strategy remains centered on building a portfolio of high-quality well bore assets with working interests that balance risk and capital availability.
Looking ahead, Stonehorse’s partnership in Alberta’s Drumheller region is expected to yield multiple follow-up drilling opportunities, potentially driving further production growth. Meanwhile, the timing and scope of Australian asset workovers remain under review, adding an element of anticipation to the company’s near-term operational plans.
Bottom Line?
Stonehorse’s steady production and strong cash position set the stage for potential growth, but watch for developments in Australian operations and follow-up drilling in Alberta.
Questions in the middle?
- Will follow-up drilling in Drumheller sustain or accelerate production growth?
- How will the company manage operational challenges like the Wapiti well downtime going forward?
- What is the timeline and potential impact of workover activities on the Myall Creek asset in Australia?
