PARIS--(BUSINESS WIRE)--Regulatory News:
Maurel & Prom (Paris:MAU):
Sales for the first half of 2019
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Q1 2019 |
Q2 2019 |
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H1 2019 |
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H1 2018 |
H1 2019 vs. H1 2018 change |
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Total production sold over the period, M&P working interest |
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Million barrels of oil |
1.4 |
1.6 |
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3.0 |
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3.1 |
-2% |
Million MMBTU |
3.3 |
2.6 |
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5.9 |
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7.1 |
-17% |
Average sale price |
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Oil, in US$/bbl |
63.9 |
72.5 |
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68.4 |
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69.2 |
-1% |
Gas, in US$/MMBTU |
3.26 |
3.28 |
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3.27 |
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3.17 |
3% |
Sales (in US$m) |
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Oil production |
100 |
123 |
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222 |
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231 |
-4% |
Gabon |
91 |
115 |
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206 |
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213 |
-3% |
Tanzania |
9 |
7 |
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16 |
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18 |
-14% |
Drilling activities |
4 |
3 |
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7 |
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6 |
10% |
Consolidated sales (in US$m) |
103 |
126 |
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229 |
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237 |
-4% |
Lifting imbalances |
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-27 |
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+14 |
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Entitlement revenues adjusted for lifting imbalances (in US$m) |
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256 |
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223 |
+15% |
Sales in the first half of 2019 amounted to US$229 million, a decrease of 4% from H1 2018.
The increase in production in Gabon during the first half of 2019 (+16% from H1 2018) in a similar pricing environment (average sale price of oil US$68.4/bbl in H1 20191 compared with US$69.2/bbl in H1 2018 and US$68.2/bbl in H2 2018) was not reflected in sales due to an evacuation delay of 591 thousand barrels: 382 thousand barrels produced but not evacuated over H1 2019, in addition to evacuation delays recorded in H1 2018 which had the reverse effect, as evacuations at the time exceeded production by 209 thousand barrels.
Excluding lifting imbalances, entitlement revenues are up 15% from H1 2018, standing at US$256 million vs. US$223 million in the first half of 2018.
Sales in Tanzania in H1 2019 remained stable overall at US$16 million, compared with US$18 million in H1 2018.
Hydrocarbon production for the first half of 2019
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Units |
Q1 2019 |
Q2 2019 |
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H1 2019 |
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H1 2018 |
H1 2019 vs H1 2018 change |
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Production fully operated by Maurel & Prom |
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Oil |
bopd |
24,666 |
25,395 |
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25,033 |
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21,561 |
16% |
Gas |
MMcfpd |
73.7 |
58.7 |
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66.2 |
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79.3 |
-17% |
TOTAL |
boepd |
36,950 |
35,812 |
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36,061 |
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34,780 |
4% |
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Maurel & Prom working interest production |
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Oil |
bopd |
19,733 |
20,316 |
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20,026 |
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17,249 |
16% |
Gas |
MMcfpd |
35.4 |
28.2 |
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31.8 |
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38.1 |
-17% |
TOTAL |
boepd |
25,636 |
25,020 |
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25,326 |
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23,602 |
7% |
- Gabon
In Gabon, operated oil production stood at 25,033 bopd (20,026 bopd for M&P working interest) in the first half of 2019, up 16% from the same period in 2018. Production increased during the first semester, from 25,003 bopd in January to 26,729 bopd in June, and without evacuation restrictions as faced in 2018.
This increase reflects the progress made on export management, as well as the consolidation of the production potential of the field, thanks to development drilling and continuation of the water injection programme.
- Tanzania
In Tanzania, total operated production averaged 66.2 MMcfpd in the first half of 2019, or 31.8 MMcfpd for M&P working interest (48.06%), down 17% from H1 2018.
This decline was due to an early and heavy rainy season in eastern Africa this year, which led to a marked increase in hydropower generation capacity at the expense of gas demand.
Cash position
The Group’s cash position stood at US$360 million at 30 June 2019, a significant increase compared with the position at 31 December 2018 (US$280 million). This was in part due to the signing in June 2019 of an agreement with the Gabon Oil Company (GOC), the Group’s partner on the Ezanga permit, to end the carry mechanism which it benefited from.
This agreement notably includes a reassignment of lifting rights for 713 thousand barrels evacuated by M&P under the GOC carry mechanism for 2018 and early 2019. This reassignment was made in return for proceeds of US$45 million, included in the cash position at 30 June, which shall be offset in H2 2019, when the Group will therefore lift less oil.
Moreover, an amount of US$43 million was paid by GOC into an escrow account to settle the balance of the historical carry receivables (amounts prior to 2018). This amount shall be available for release in December 2019 and is therefore not recognized yet in M&P’s cash position at 30 June.
A portion of this cash shall be used during the second half of 2019 to finance the sustained exploration programme (estimated at around US$65 million) and the balance of payments relating to 2018 acquisitions (Venezuela and Angola).
Outlook and development
- Continued operations on the Mios permit in France
The positive exploration result for the Caudos-Nord-2D (CDN-2D) well announced during the first half 2019 results led the Group to continue its drilling campaign with the completion of the Caudos-Nord-3D (CDN-3D) well. Drilling at this second well began in mid-April and came to a positive conclusion at the end of May, confirming the results of CDN-2D.
This discovery is however expected to remain modest in size, with estimated total commercial oil volume of approximately one million barrels.
- Exploration programme in Gabon
Civil engineering works to prepare the exploration drilling on the Kari permit in South Gabon began at the end of May 2019. Half of the access channel to the drilling area has been completed and work remains underway. The actual start-up of drilling is expected during the last quarter of 2019.
On the Ezanga permit, two exploration drilling projects will be carried out during the third quarter of 2019.
- Acquisition of seismic data in Sicily
The beginning of the campaign to acquire seismic data on the Fiume-Tellaro permit is scheduled for September 2019.
French |
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English |
pieds cubes |
pc |
cf |
cubic feet |
pieds cubes par jour |
pc/j |
cfpd |
cubic feet per day |
milliers de pieds cubes |
kpc |
Mcf |
1,000 cubic feet |
millions de pieds cubes |
Mpc |
MMcf |
1,000 Mcf = million cubic feet |
milliards de pieds cubes |
Gpc |
Bcf |
billion cubic feet |
baril |
b |
bbl |
barrel |
barils d'huile par jour |
b/j |
bopd |
barrels of oil per day |
milliers de barils |
kb |
Mbbl |
1,000 barrels |
millions de barils |
Mb |
MMbbl |
1,000 Mbbl = million barrels |
barils équivalent pétrole |
bep |
boe |
barrels of oil equivalent |
barils équivalent pétrole par jour |
bep/j |
boepd |
barrels of oil equivalent per day |
milliers de barils équivalent pétrole |
kbep |
Mboe |
1,000 barrels of oil equivalent |
millions de barils équivalents pétrole |
Mbep |
MMboe |
1,000 Mbbl = million barrels of oil equivalent |
For more information, visit www.maureletprom.fr
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 and sabotage.
Maurel & Prom is listed for trading on Euronext Paris
CAC Small, CAC Mid&Small, CAC All Tradable
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
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1 Sales included in this press release are based on provisional price data which may be slightly adjusted over the second half of July; actual sales recognised in the Group’s half year accounts to be published on 1 August may vary slightly as a result.