PARIS, November 4, 2010 /PRNewswire/ --
Business during the third quarter of 2010 Sales (excluding Nigeria) - Q3 2010: EUR92.5 million - 9 months: EUR223.7 million Entitlements in Q3 2010: 14,565 boepd (excluding Nigeria) up 33% compared to Q2 2010 and 59% compared to Q3 2009 - Onal: 9,974 boepd - Omko: 758 boepd - Omgw: 3,280 boepd - Ombg: 225 boepd - Banio: 329 boepd Finalisation of agreements to sell the interests in OMLs 4, 38 and 41 in Nigeria to SEPLAT (MP: 45%) - Production gradually taken into account - Financing drawned (including RBL drawdown for $240 million and private placement based on OCEANE convertible bonds for EUR70 million) - First extraction scheduled for November 2010 Confirmation of the discovery for the Sabanero field in Colombia - Evidence found of oil when drilling the SAB-1 well - Discovery confirmed with the successful SAB-SE-1 well: 500 boepd during testing Development of the OMOC-North field - Success with the OMOC-N-301 well: 1,600 boepd during testing - Drilling of the OMOC-N-201 well: findings currently being analysed - Two drilling operations underway: OMOC-N-103 and OMOC-N-302
Sales for the third quarter and the first nine months of 2010 (excluding Nigeria)
(in EUR m) Q1 2010 Q2 2010 Q3 2010* 9 months 2010 Exchange rate 1.383 1.273 1.291 1.315 Congo 0.0 0.0 0.2 0.2 Tilapia 0.0 0.0 0.0 0.0 Kouilou 0.0 0.0 0.2 0.2 Gabon 33.5 64.8 75.6 173.9 Banio 1.1 1.7 1.0 3.8 Onal 26.8 49.1 52.5 128.4 Omko 5.6 5.6 4.1 15.3 Omgw 0.0 7.2 16.8 24.0 Ombg 0.0 1.2 1.1 2.3 Tanzania 0.1 0.2 0.0 0.4 Mnazi bay 0.1 0.2 0.0 0.4 Oil production 33.5 65.2 75.8 174.4 Oil services 23.5 27.5 24.0 75.0 Other -8.1 -10.2 -7.3 -25.7 TOTAL 48.9 82.4 92.5 223.7 (table continued) (in EUR m) 9 months 2009 Q3 2009 Exchange rate 1.366 1.43 Congo 0.1 0 Tilapia 0.1 0 Kouilou 0.1 0.1 Gabon 73.9 40.4 Banio 4 1.6 Onal 50.3 29.2 Omko 19.7 9.5 Omgw 0 0 Ombg 0 0 Tanzania 0 40.4 Mnazi bay 0 1.6 Oil production 74.1 135% 40.4 87% Oil services 61.7 22% 18.8 27% Other -7.2 -6.4 TOTAL 128.6 74% 52.9 74% *Third quarter sales are calculated by subtracting the figure for first half sales from sales for the first nine months of the year.
Sales growth has been driven by production being ramped up in the Gabon fields.
The Group recorded EUR0.4 million in sales on the Mnazi Bay field in Tanzania, in which the Group acquired a 38.22% interest in 2009.
At the beginning of 2009, when wrapping up financing for the Reserve Based Loan, the Group set up hedging instruments on the price per barrel. The average hedge price over the first nine months of 2010 came to $60.9/b, while the Brent price averaged out at $77.1/b., representing a negative adjustment of EUR25.7 million.
Excluding the impact of hedging, the average sale price in Gabon for the first nine months of 2010 came to $76.1/b for Onal, Omko, Ombg and Omgw production, and $60.8/b for Banio production.
Caroil's contribution to sales for the third quarter of 2010 (oil services) totalled EUR24.0 million, compared with EUR18.8 million for the same period in 2009, a 28% increase. Expressed in US dollars, the revenue contribution generated by this business came to US$ 30.9 million, compared with US$ 27.1 million for the third quarter of 2009.
Over the first nine months, Caroil's company sales were stable at US$ 143 million.
69% of Caroil's business is conducted with clients other than Maurel Prom.
Environmental data 2010 2009 Change 9 months 9 months Exchange rate (EUR/US$) 1.315 1.366 -4% Exchange rate (US$/EUR) 0.76 0.73 -4% Brent (US$/barrel) 77.1 57.1 +35%
Entitlements[1] in Q3 2010 represented 14,565 BOEPD, with an average over the first nine months of 2010 of 11,415 BOEPD.
The following table summarises the various production data (in barrels per day) for the first three quarters of 2010.
2010 Gross production[1] Maurel Prom share of production[1] BOEPD Q1 Q2 Q3 9 months Q1 Q2 Q3 9 months Gabon 10,654 13,299 17,441 13,823 9,132 11,607 15,436 12,082 Banio 354 251 364 323 354 251 364 323 Onal 8,534 10,197 12,422 10,399 7,254 8,668 10,559 8,839 Omko 1,610 1,088 944 1,212 1,369 925 803 1,030 Omgw 156 1,518 3,472 1,727 156 1,518 3,472 1,727 Ombg - 245 238 162 - 245 238 162 2010 Entitlements[1] Production sold[1] BOEPD Q1 Q2 Q3 9 months Q1 Q2 Q3 9 months Gabon 8,645 10,969 14,565 11,415 7,100 11,985 14,043 11,068 Banio 354 251 329 311 306 342 243 297 Onal 6,852 8,188 9,974 8,349 5,627 9,011 9,699 8,127 Omko 1,293 874 758 973 1,167 1,014 746 974 Omgw 146 1,424 3,280 1,628 - 1,392 3,136 1,521 Ombg - 232 225 153 - 226 218 149
The third quarter of 2010 saw an increase in production on the Onal field, reflecting the water injection action, as well as the Omgw field, after a further two wells were connected up. Please note that as the Omgw and Ombg fields are under long term test, the group working interest is 100%. The working interest will be 85% after obtaining the exploitation license AEE (Autorisation Exclusive d'Exploitation).
Entitled production in Gabon in Q3 2010 increased by 33% compared to Q2 2010 and 59% compared to Q3 2009 at 14,565 boepd.
Oil and gas production in Venezuela, after oil taxes in kind of 30%, came to 872 barrels of oil equivalent per day for the third quarter. Oil accounted for 45% of production. This business, consolidated on an equity basis (equity associate), is not included in the Group's sales.
Sales agreements finalised in Nigeria
In Nigeria, the agreements between SEPLAT (Nigerian-law company, MP stake: 45%), SPDC, TOTAL and ENI were definitively signed on 30 July 2010.
The transfer of ownership required meter facilities to be put in place in August. Production has only been recognised since the new meters were fitted and accepted by the parties. Talks are underway to determine the backdating approach for billing over this transition phase, whose dates may vary according to the fields.
Pending the signature of an export permit, the procedure for which was completed at the end of October, no lifting was recorded during the third quarter of 2010.
The first lifting, including this catch-up, will be taking place midway through November 2010, enabling the Group to recognise the corresponding sales.
For the fields, the current level of production at 100% represents around 28,000 boepd, compared to the initial estimates from the independent auditor evaluated at about 12,500 boepd. This level of production could come back to around 30,000 boepd after the resumption of the condensate production linked to the Sapele field gas production that has been stopped temporarily because of maintenance work in progress on the electric plant supplied.
With the conclusion of these operations, Maurel Prom has put the following financing in place:
- Issue of OCEANE convertible bonds maturing in 2015 based on a private placement: EUR70 million; - Drawdown on the Reserves Based Loan (RBL) facility at the end of July 2010: $240 million; - Short-term credit line set up in July 2010: $50 million.
Discovery in the Sabanero field in Columbia
The SAB-SE-1 exploration well has revealed the presence of 12degrees API crude oil in the Carbonera C7 formation. This second drilling was intended to confirm the productivity of the discovery made in July 2010 with the SAB-1 well, in addition to the reservoir's thickness. The useful oil height is 27 feet (8 m), with 15 feet (4.5 m) perforated, giving a flow rate of 500 barrels per day, compared with the 140 barrels produced by the first well before the water's arrival.
Based on data from the two wells drilled to date and 3D seismic coverage, it could extend over 40 km2 with a useful oil height of 30 feet (9 m). The operating conditions and oil quality seem to be similar to those recorded on the Rubiales oilfield (located 50 km southwest).
A programme to drill three wells is scheduled, with the first to start up by the end of November 2010. That is just after drilling those three wells that the commerciality of the reserves could be made.
Development of the Omoc-N field: new pocket identified on Onal
In the Gres de Base formation, the OMOC-N-301 delineation well has encountered saturated hydrocarbon intervals, with 44 m perforated.
During testing on a 32/64'' choke, a flow rate of 1,600 boepd of oil was recorded with the oil samples collected showing a 33degrees API oil.
This well has demonstrated the presence of a new pocket in the Gres de Base, proving a southeast extension of the Onal field.
A second well (OMOC-N-302) is currently being created with directional drilling from the same platform and is expected to determine the scale of this extension.
The OMOC-N-201 well has revealed useful oil heights of 6 m for Kissenda Superieur, 10 m for Kissenda Inferieur and 4 m in the Gres de Base. These findings are currently being analysed.
The OMOC-N-103 well is currently being drilled.
LEXICON
Gross production: production at 100%.
Working interest production: gross production - partners' share.
Mining royalties in Gabon: royalties are paid in foreign currencies in Gabon
Entitlements: working interest production - in-kind royalties - in-kind State share of profit oil + corporation tax if the State's profit oil is paid in kind.
Production sold: entitlements -/+ stock.
Sale price: in Gabon, prices are set by the State based on the oil quality and benchmark prices. The mutually-agreed costs to achieve commercial viability are then deducted from these prices.
Sales: entitlements x sale price. Sales are recognised on the production extraction date.
Tax and duties: profit oil due to the Gabonese State is paid in foreign currencies for the Banio field and in kind for the Onal, Omko, Omgw and Ombg fields. Corporation tax in Gabon is included in the State profit oil and systematically recognised under sales.
Second-quarter sales: sales for the second quarter are calculated by deducting sales for the first quarter from the figure for half-year sales.
Third-quarter sales: sales for the third quarter are calculated by deducting sales for the first half of the year from sales for the first nine months.
This document may contain forward-looking statements regarding the financial position, results, business, and industrial strategy of Maurel Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors such as, fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism or sabotage.
Maurel Prom is listed for trading on Euronext Paris - Compartment A - CAC mid 100 Index [1] See lexicon, excluding Venezuela and Nigeria For more information, go to http://www.maureletprom.fr Communication: INFLUENCES T: +33-1-42-72-46-76 +: communication@agence-influences.fr
SOURCE: Maurel SOURCE: Prom
CONTACT: INFLUENCES, T: +33-1-42-72-46-76, +:communication@agence-influences.fr
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