Operating profit in 1Q 2012 of DKK 65.3MM (1Q 2011: DKK 26.7MM)Operating profit in 1Q 2012 of DKK 65.3MM (1Q 2011: DKK 26.7MM) and profit before taxation of DKK 61.1MM (1Q 2011: DKK 16.2MM). Cash balance at end of 1Q 2012 was DKK 169.0MM (At year end 2011: DKK 114.3MM)Tórshavn, Faroe Islands, 2012-05-30 11:17 CEST --
P/F Atlantic Petroleum (OMX: FO-ATLA) today announces its results for the first three months of 2012. 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:
“Atlantic Petroleum has had a 1st quarter of 2012 with high oil prices and good production rates. This has generated a 1st quarter EBIT of DKK 65.3MM which is the best ever for Atlantic Petroleum.
Atlantic Petroleum is continuing to invest in the future. We have submitted 9 applications for 31 blocks or part blocks in the UK 27th Round that closed 1st May. The Orchid exploration well was drilled in March/April and discovered oil. In July the Statoil operated Brugdan II well spuds in the Faroe Islands, and the Spaniards well in the UK is expected to spud later in 2012. We plan to add to our 2012 drilling portfolio and are also firming up the programme for 2013.
We have an exciting year ahead of us with big decisions to be made on assets in our portfolio and with regards to business development opportunities. Asset deals across the value chain are continually being evaluated. With a cash balance on 30th May of DKK 226MM we are well equipped to invest in the right opportunity when we see it.”
Highlights
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EBIT in 1Q 2012 was DKK 65.3MM, which is the highest ever
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EBITDAX in 1Q 2012 was DKK 104.4MM
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Cash and cash equivalents at end 1Q 2012 was DKK 169MM, compared to DKK 114MM at the end of 4Q 2011. Cash and equivalents at 30th May 2012 was DKK 225.5MM
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Total production in 1Q 2012 amounted to 232,000 boe (barrels of oil equivalent) corresponding to an average of 2,550 boepd (barrels of oil equivalent per day) net to Atlantic Petroleum
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Production from the Ettrick field has been relatively stable and towards the higher end of expectations. A new water injection well has been drilled and completed
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Blackbird field was brought into production on 16th November 2011. In 1Q 2012, the field has been producing through the Ettrick FPSO Aoka Mizu at expected rates
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The Chestnut field is producing at rates towards the higher end of expectation. Production trials have been on-going to assess the possibility of modifying choke settings on the production wells with a view to enhancing remaining recovery
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Perth field evaluation is on-going as planned, with a revised field development plan (FDP) submitted to the UK authorities in February 2012
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The 29/1c-9 Orchid well was spudded on UK licence P.1556, Block 29/1c on the 10th March. Atlantic Petroleum has a 10% working interest. The well was subsequently plugged and abandoned in May
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On 30th December 2011, Atlantic Petroleum was offered award of 5 new UK licences. Formal acceptance of these licences has been on-going in 1Q 2012
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Planning on-going for the Faroes Brugdan II well (AP 1%) and the UK Spaniards well (AP 3.24%), both of which are scheduled to spud in 3Q 2012
2012 Outlook
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Production for the year is expected to be in line with previous guidance within the range of 1,900 - 2,200 boepd. Financial performance guidance remains unchanged
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The Blackbird field development will be completed with the drilling of an injector well in 2Q-3Q 2012
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A series of well work-overs and the new water injector are designed to maintain production rates from the Ettrick field
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Chestnut production is expected to be steady through-out the year, with operator Centrica looking at late life options for maximizing recovery
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On the Perth field, await DECC feedback on the Field Development Plan and continue technical evaluation ahead of a final investment decision
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Drill an exploration well on the Brugdan Deep prospect in 3Q-4Q 2012
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Drill an exploration well on the Spaniards prospect in 3Q 2012
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The Group has agreed with P/F Eik Banki Føroyar that repayment of the current debt facility will be extended from three to five years. The current unused overdraft facility with P/F BankNordik will be relinquished
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The Company has engaged in oil price hedging to secure a more stable revenue stream. Approximately 27% of current production has been hedged 12 months ahead. Average oil price hedged at is USD 110 per barrel
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In the 27th UK Licensing Round closing 1st May 2012 Atlantic Petroleum had 9 applications, for a total of 31 bocks or part blocks with various partners and operators. 27th round awards are expected later in the year
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The Company continues to actively evaluate a number of business development opportunities across the value chain to enhance and build upon existing activity
Conference call
In connection with the publication of the 1Q 2012 Condensed Consolidated Interim Report Atlantic Petroleum will host a webcast/conference call for analysts and investors.
The webcast/conference call will take place on Wednesday 30th May, at 12.00 noon (GMT). If you would like to participate in the conference call, please dial the relevant number below a few minutes before the conference starts:
- DK: +45 70140453
- UK: +44 (0) 2071086303
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. 15/2012
Issued 30-05-2012
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
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