Maurel & Prom: Q1 2020 Activity – Date of the Annual General Meeting

  • Working interest production of 28,916 boepd, a slight increase compared to Q4 2019
    • Working interest production of 19,594 boepd on Ezanga, a 5% increase
  • Valued production of $103 million, down 23% compared to Q4 2019
    • Valued production significantly impacted by the drop in oil price
    • Consolidated sales of $80 million after adjustment for the valuation of lifting rights at the end of March
  • Well positioned to face current market conditions
    • Active implementation of announced cost saving initiatives
    • Cash balance of $249 million at the end of March, an increase compared to December 2019 ($231 million)
  • Annual General Meeting of shareholders rescheduled to 30 June 2020

PARIS--()--Regulatory News:

Maurel & Prom (Paris:MAU):

Key indicators for the first quarters of 2020

 

 

 

 

 

 

 

 

 

 

 

Q1

2019

 

Q2

2019

 

Q3

2019

 

Q4

2019

 

 

Q1

2020

 

 

Variation vs.

 

 

 

 

 

Q1 2019

 

Q4 2019

 

 

 

 

Working interest production

 

 

 

 

 

Gabon (oil)

bopd

 

19,733

 

20,316

 

20,654

 

18,612

 

 

19,594

 

 

-1%

 

5%

Angola (oil)

bopd

 

 

 

3,041

 

4,415

 

 

4,213

 

 

/

 

-5%

Tanzania (gas)

mmcfd

 

35.4

 

28.2

 

37.4

 

34.1

 

 

30.7

 

 

-13%

 

-10%

Total

boepd

 

25,636

 

25,020

 

29,937

 

28,706

 

 

28,916

 

 

13%

 

1%

 

Average sale price

 

 

 

 

 

 

Oil

$/bbl

 

63.9

 

72.5

 

65.8

 

66.8

 

 

56.5

 

 

-12%

 

-15%

Gas

$/BTU

 

3.26

 

3.28

 

3.25

 

3.26

 

 

3.32

 

 

2%

 

2%

 

Sales

 

 

 

 

 

 

Gabon

$mm

 

103

 

126

 

118

 

107

 

 

83

 

 

-33%

 

-23%

Angola

$mm

 

 

 

11

 

19

 

 

13

 

 

/

 

-33%

Tanzania

$mm

 

9

 

7

 

9

 

9

 

 

8

 

 

-11%

 

-10%

Valued production

$mm

 

112

 

133

 

139

 

135

 

 

103

 

 

-8%

 

-23%

Drilling activities

$mm

 

4

 

3

 

3

 

2

 

 

5

 

 

27%

 

107%

Trading of third party oil

$mm

 

 

 

 

7

 

 

 

 

/

 

/

Adjustment for lifting imbalances

$mm

 

-12

 

-11

 

0

 

-11

 

 

-28

 

 

/

 

/

Consolidated sales

 

 

103

 

126

 

142

 

133

 

 

80

 

 

-22%

 

-40%

M&P’s working interest production for Q1 2020 stood at 28,916 boepd, a 1% increase compared to Q4 2019 (28,716 boepd), as the rise in production in Gabon exceeded the slight decline in Angola and Tanzania.

The average sale price for oil in Q1 2020 was $56.5/bbl, vs. $66.8/bbl in Q4 2019. This price reflects lifted production only; however the average price over the period (used for the calculation of valued production) was $49.9/bbl.

As a result, the Group’s valued production (income from production activities, before lifting imbalances) fell by 23% compared to Q4 2019 and stood at $103 million.

The adjustment for lifting imbalances had a negative impact of $28 million, most of it ($26 million) related to the adjustment of the value of outstanding lifting rights (1.3 million barrels between Angola and Gabon) at the prevailing oil price as of 31 March 2020.

Taking into account this adjustment, consolidated sales for the Group in Q1 2020 stood at $80 million, a marked drop from Q4 2020.

Production activities

  • Gabon

M&P’s working interest (80%) oil production on the Ezanga licence was 19,594 bopd in Q1 2020 (gross production: 24,492 bopd), up 5% from Q4 2019. This increase is due in particular to the start of production on three new wells over the period.

The decision made in March to suspend development drilling activities following the drop in oil price was immediately implemented, and the rig was demobilised and stacked on site.

  • Tanzania

M&P’s working interest (48.06%) gas production on the Mnazi Bay licence was 30.7 mmcfd (gross production: 63.8 mmcfd) in Q1 2020. Gas nominations from TPDC remain below historical levels as a result of continuous availability of hydropower capacity.

  • Angola

M&P’s working interest (20%) oil production on Block 3/05 was 4,213 bopd in Q1 2020 (gross production: 21,065 bopd), down 5% from Q4 2019.

Financial update

As of 31 March 2020, M&P’s cash balance stood at $249 million, up slightly from the closing balance of FY 2019 ($231 million as of 31 December 2019). It is worth highlighting that the first $18.75 million quarterly instalment of the $600 million Term Loan was repaid in March.

The Group is actively implementing the various cost saving initiatives recently announced, and is focusing on all available measures to preserve cash.

In addition to this, and given the current oil price situation, M&P retains the discretion to conduct temporary and targeted production cuts, in certain cases where reservoir conditions allow for a quick recovery.

Rescheduling of the annual General Meeting of shareholders

As a result of the uncertainties arising from the current health crisis due to the coronavirus epidemic, the Board of directors of Etablissements Maurel & Prom S.A. which met on 22 April 2020 has decided to reschedule the annual General Meeting initially planned on 11 June 2020 for 30 June 2020 at 2:30 p.m. The details of the meeting will be released later.

Français

 

 

Anglais

pieds cubes

pc

cf

cubic feet

millions de pieds cubes par jour

Mpc/j

mmcfd

million cubic feet per day

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

millions de barils

Mb

mmbbls

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

millions de barils équivalent pétrole

Mbep

mmboe

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 All-Tradable – CAC Small – CAC Mid & Small – PEA-PME and SRD eligible
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA

Contacts

Maurel & Prom
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir@maureletprom.fr

NewCap
Financial communication and investor relations / Media relations
Louis-Victor Delouvrier / Nicolas Merigeau
Tel: +33 (0)1 44 71 98 53 / +33 (0)1 44 71 94 98
maureletprom@newcap.eu

Contacts

Maurel & Prom
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir@maureletprom.fr

NewCap
Financial communication and investor relations / Media relations
Louis-Victor Delouvrier / Nicolas Merigeau
Tel: +33 (0)1 44 71 98 53 / +33 (0)1 44 71 94 98
maureletprom@newcap.eu