Tórshavn, Faroe Islands, 2013-11-13 06:44 CET (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (OMX: FO-ATLA) today announces its results for the first nine months of 2013. This company announcement should be read in conjunction with Atlantic Petroleum’s Condensed Consolidated Interim Report attached to this announcement.
Ben Arabo, Atlantic Petroleum’s CEO, stated:
“ Production in the 3 rd quarter was in line with expectation, and things are progressing on all three of our producing fields. We announced an extension to the Chestnut FPSO contract in September. The new Ettrick producer well is now onstream, and a new Blackbird producer is due to be spudded in 1Q 2014. On the development front, the Orlando field development work is ongoing as planned and we are still working towards a 2014 sanction of Kells.
With regards to exploration & appraisal the UK Pegasus well and the Faroes Brugdan 2 re-entry are both planned for 1Q/2Q 2014 while options are still being examined for further work on Perth possibly in conjunction with the Lowlander discovery to the North of the Perth discovery.
Strategically we are positioning the company for growth. We are excited about the prospects of a listing of Atlantic Petroleum on the Oslo Stock Exchange. The Norwegian capital market has a proven track record for investing in exploration and production companies. A listing of Atlantic Petroleum on the Oslo Stock Exchange will increase our visibility in the E&P sector and be a cornerstone in executing our ambitious growth strategies, in particular in Norway, as well as to provide value for our shareholders.”
Highlights
- Revenue in the first nine months 2013 was DKK 328.3MM (First nine months of 2012 was DKK 437.3MM). Average realised oil price per barrel was USD 109.5 per boe
- EBIT for the first nine months of 2013 was DKK -2.9MM (First nine months of 2012 was DKK 132.9MM)
- EBITDAX for the first nine months of 2013 was DKK 184.0MM (First nine months of 2012 was DKK 318.0MM)
- Exploration expense for the first nine months of 2013 was DKK 113.8M (First nine months of 2012 was DKK 17.4MM). During the period the Polecat licence was relinquished and the Magnolia well was drilled but did not encounter hydrocarbons. Further the Dunquin North well was drilled and found residual oil however the accumulation was not deemed as being commercial. The unsuccessful exploration cost were expensed during the period
- General and administration cost for the first nine months of 2013 was DKK 50.2MM (First nine months of 2012 was DKK 25.1MM). The cost increase reflects the new office in Bergen on a pre-tax basis. In Norway there is a tax refund of 78%
- Finance gain the first nine months of 2013 was DKK 4.2MM (First nine months of 2012 was DKK 1.5MM) increase is due to exchange rate gains in USD/GBP
- Norwegian tax refund for the first nine months of 2013 was DKK 22.0MM (First nine months of 2012 was Nil) and relates to Norwegian tax refund on expenditure related to exploration activity. At end 3Q 2013 the total repayable amount relating to Norwegian tax refund was DKK 45.2MM (At year end 2012: DKK 27.1MM)
- Cash generated from operations in the first nine months of 2013 was DKK 124.7MM (First nine months of 2012 was DKK 318.9MM)
- Cash and cash equivalents at end 3Q 2013 was DKK 53.1MM (end 2012 DKK 242.5MM) decrease reflects acquisition of significant development assets
- Production in 3Q 2013 amounted to 190,000 boe corresponding to an average of 2,068 boepd net to the Group
- The Chestnut field produced at stable rates at the high end of expectation. A contract extension and reserve upgrade were announced on the 9 th September
- Production from the Ettrick field was relatively stable towards the higher end of expectation
- Blackbird field production has been stable throughout the period with the field production responding to water injection
- The Orlando field development has been approved by partners and subsequently been sanctioned by DECC (17 th April 2013). Orlando development continues with key contracts being finalised and placed
- The Dunquin North well was plugged and abandoned as per the pre-drill plan on 30 th July 2013. The well penetrated around 249m of the massive carbonate Cretaceous target within prognosis and was drilled to a total depth of 5000m. Petrophysical analysis of the well logs indicates an upper zone of 44m which has residual hydrocarbon saturations in a porous reservoir. Work is now ongoing to evaluate the impact of these data on the Dunquin South prospect
- Gaffney, Cline & Associates prepared a Competent Person´s Report on Atlantic Petroleum interests as at 31 st August 2013. A summary version of the report has been issued with these accounts
2013 Outlook
- Production for the year is expected to be in the current guidance range of 725,000 – 800,000 boe
- EBITDAX for the year is expected to be in the guidance range of DKK 225MM – DKK 275MM
- The Chestnut fields’ performance continues to exceed expectation. Studies are currently underway to fully evaluate the potential impact of the good performance and the possibility of further field life extension beyond the current FPSO contract end in March 2016
- The Ettrick E9 infill production well spudded in 2Q 2013 is expected to come on-stream imminently after the annual Aoka Mizu shut-down in November 2013
- On Blackbird a 2 nd production well will be drilled in 1Q 2014 to increase production and extend field life of the Ettrick and Blackbird fields
- Development of the Orlando field continues with the finalization and award of key contracts. The field will add significant production to Atlantic Petroleum
- The Kells FDP has been agreed and is being held by DECC pending final submission in 2014. First oil is expected in 2016. When sanctioned, the Kells development will add significant reserves to Atlantic Petroleum
- Atlantic Petroleum has participated in APA 2013 and expect results to be announced 1Q 2014
- The UK Pegasus West appraisal well will be drilled in end 1Q 2014
- The Perth JV is evaluating options for a joint development of Perth and the similar sour oil discovery Lowlander. At the same time, rig options for 2014 drilling are being evaluated
- Dunquin post well studies will be carried out to ascertain the impact of the oil shows and the proven working hydrocarbon system on other prospects in the area
Conference call
In connection with the publication of the first nine months of 2013 Condensed Consolidated Interim Report Atlantic Petroleum will host a webcast for analysts and investors
The webcast/conference call will take place on Wednesday 13 th November 2013 at the local time stated below:
Copenhagen 10:00 am
London 9:00 am
Tórshavn 9:00 am
Reykjavik 9:00 am
More details about the conference call can be found on the Company’s website www.petroleum.fo .
Further Details:
Further details can be obtained from Ben Arabo, CEO, tel +298 350100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo .
On the website, it is also possible to sign up for the Company’s e-mail newsletter.
Announcement no. 45/2013
Issued 13-11-2013
P/F Atlantic Petroleum Yviri við Strond 4, 3rd floor P.O. Box 1228 FO-110 Tórshavn Faroe Islands Telephone +298 350 100 Fax +298 350 101 Website: www.petroleum.fo E-mail: petroleum@petroleum.fo
