Tórshavn, Faroe Islands, 2014-05-21 07:56 CEST (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces its results for the first three months of 2014. 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:
“We have a year ahead of us with large potential value triggers with three more exploration wells in 2014 and we are also firming up the programme for 2015 and beyond, as our extensive portfolio that we have built over the last 3 years starts to deliver good drillable prospects. The Faroes Brugdan II was re-entered in May and the UK Pegasus well is expected to spud in June. Both these wells will have results over the summer. Later this year the Ivory well in Norway will be drilled in the Norwegian Sea. The acreage position in the Norwegian Sea is a prime example of why Atlantic Petroleum entered Norway. The acreage holds large prospects with a relatively high chance of success.
Atlantic Petroleum is well funded with a strong, cash position, cash flow and low debt. The Group is well funded to secure future production with near term development of the Orlando and Kells fields. The funding of Orlando and Kells will be cash from operations and debt. In addition to the firm development programme we also have large potential value triggers in other assets such as Perth where progress is expected this year.”
Highlights & Outlook
- Production in 1Q 2014 amounted to 179,000 boe corresponding to an average of 1,993 boepd net to the Group which is slightly above the guidance
- Revenue in 1Q 2014 DKK 112.7MM (1Q 2013 DKK 121.7MM). Average realised oil price was USD 108.3
- EBITDAX DKK 47.4MM (1Q 2013 DKK 69.8MM)
- Exploration expense for the first three months of 2014 was DKK 81.3MM. Although the Langlitinden well discovered hydrocarbons it is not deemed to be commercial at this stage and hence the costs related to the well have been expensed during the period
- General and administration costs 1Q 2014 DKK 14.2MM (1Q 2013 DKK 14.2MM) and depreciation of PPE & Intangible assets was DKK 3.9MM (1Q 2013 DKK 2.0.MM)
- Cash and cash equivalents at end 1Q 2014 was DKK 173.2MM (end 2013 DKK 184.6MM)
- The Chestnut field produced at stable rates at the high end of expectation. In May the Hummingbird FPSO contract and hence field life was extended for yet another year
- Blackbird field production has been stable and the second production well was spudded in April. The well is expected to provide a significant production boost for the field. The investment in the well qualifies for the Brown Field Allowance under the UK taxation system
- Production from the Ettrick field was relatively stable. The new production well was drilled and came on-stream in the 4Q 2013. It has increased the rate of production and has added further reserves to the field
- The Orlando field development continues and currently there are discussions with the operator of the Ninian Central Platform to secure commercial terms for the modifications to the platform. First oil is expected in 2016
Live webcast/Conference Call: In connection with the publication of the 1Q 2014 Condensed Consolidated Interim Report Atlantic Petroleum will host a live webcast followed by a conference call.
The live webcast/conference call will take place on Wednesday 21 st May 2014 at the local time stated below:
- Tórshavn/London 10 AM
- Oslo/Copenhagen 11 AM
To view the live webcast please enter our website www.petroleum.fo and follow the link.
Atlantic Petroleum in brief:
Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds 45 oil and gas licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.
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. 25/2014
Issued 21-05-2014
P/F Atlantic Petroleum Yviri við Strond 4 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
