Maurel & Prom : Third Quarter 2010
By Maurel Prom, PRNEWednesday, November 3, 2010
Sales (excluding Nigeria) for the First Nine Months of 2010 up 74% to EUR223.7 Million
PARIS, November 4, 2010 -
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 (M&P: 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, M&P 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 www.maureletprom.fr
Communication:
INFLUENCES
T: +33-1-42-72-46-76
+: communication@agence-influences.fr
INFLUENCES, T: +33-1-42-72-46-76, +: communication at agence-influences.fr
Tags: France, Maurel & Prom, November 4, Paris
