Maurel & Prom: Q3 2009 Revenues PARIS, November 5 /PRNewswire-FirstCall/ --
Q3 2009 Revenues of EUR52.9m, +9% vs Q2 2009
Net Production of 9,157 bopd (10,791 boepd Including Venezuela)
Cumulative Sales (9 Months) of EUR128.6m
Exclusive Development Authorisation Obtained for the Omko Field
Activity in the 3rd quarter of 2009
Sales
- Q3 2009: EUR52.9m
- 9 months cumulative: EUR128.6m
Average entitled production in Q3
- Onal: 6,539 bopd
- Omko: 2,159 bopd
- Banio: 446 bopd
- Venezuela: 1,634 boepd
Exclusive Development Authorisation obtained for the Omko
field
Extension of the exploration area
- New equity interest in the assets of Artumas in Tanzania and Mozambique
- Increased interest in the Marine III exploration permit
Payment of a dividend of EUR0.35 per share
Financial structure strengthened
- New convertible bond issue: OCEANE 2014 totalling EUR298m
- Partial redemption of OCEANE 2010 bonds totalling EUR200m
3rd quarter 2009 sales
(in EURm) Q1 Q2 Q3 9 months 9 months Q3
2009 2009 2009 2009 2008 2008
Congo 0.1 0.0 0.0 0.1 0.4 0.2
Tilapia 0.1 0.0 0.0 0.1 0.4 0.2
Kouilou 0.0 0.0 0.1 0.1 0.0 0.0
Gabon 1.0 32.6 40.4 73.9 5.8 3.4
Banio 1.0 1.4 1.6 4.0 5.8 3.4
Onal 0.0 21.0 29.2 50.3 0.0 0.0
Omko 0.0 10.2 9.5 19.7 0.0 0.0
Oil production 1.0 32.6 40.4 74.1 6.2 3.6
Oil services 26.3 16.6 18.8 61.7 60.4 2% 22.1 -15%
Other 0.0 -0.9 -6.4 -7.2 0.1 0.0
TOTAL 27.3 48.4 52.9 128.6 66.7 93% 25.7 105%
During the first 9 months of 2009, the Group sold Hocol Colombia to Ecopetrol for US$742m. Excluding this disposal, the Group's revenues for the period came to EUR128.6m, compared to EUR66.7m for the third quarter of 2008, restated to reflect the business activities being sold. Over 76% of 3rd-quarter revenues came from oil production compared to only 4% in the first quarter of 2009. This increase was due to production starting at the Onal and Omko fields in Gabon. At the beginning of 2009, the Group set up a hedging policy for the price per barrel. The average hedge price was $61.7/b whereas the price of Brent reached $68.2/b in the 3rd quarter of 2009; this generated negative revenues of EUR6.4m corresponding to the difference between the hedge price and the sale price realised for the hedged quantities. Caroil's contribution to revenues for the 3rd quarter of 2009 (oil services) came to EUR18.8m compared to EUR22.1m for the same period in 2008, a 15% decline. Expressed in US dollars, the revenue contribution generated by this business was US$27.1 million compared to US$33.5 million for the 3rd quarter of 2008. Caroil's corporate revenues in the 3rd quarter of 2009 came to EUR32.8m compared to EUR35.8m in the 3rd quarter of 2008. Expressed in US dollars, Caroil's corporate revenues came to US$47.2m compared to US$54.3m in the 3rd quarter of 2008. During the first 9 months of 2009, Caroil's corporate revenues came to US$145m compared to US$143m for the same period of 2008, a 2% increase. 58% of Caroil's business is conducted with clients other than Maurel & Prom.
Environmental data 2009 2008 Change
9 months 9 months
Exchange rate (EUR/US$) 1.37 1.52 -10%
Exchange rate (US$/EUR) 0.73 0.66 +11%
Brent (US$/barrel) 57.1 113.2 -50%
WTI (US$/barrel) 57.3 114.4 -50%
The oil industry is strongly impacted by oil price volatility. In the first 9 months of the year, average Brent and WTI were down 50% compared to the same period of 2008. On the other hand, the increase in the US currency had a favourable effect on revenues, thereby offsetting the negative effect of the decrease in the price per barrel. Maurel & Prom recorded entitled production[1] of 9,157 bopd in the 3rd quarter of 2009 (10,791 boepd including Venezuela). Given the sale of Hocol Colombia, Maurel & Prom's entire production was generated by its African assets (Congo + Gabon). In the first 9 months of 2009, production began at the Omko-101 well, on long-term testing since 23 February 2009, and at the Onal field on 9 March 2009. The following table summarises the production data, in barrels per day, according to taxes and fields in production.
Maurel & Prom working
Gross production on fields interest production
in boep Q1 Q2 Q3 Q1 Q2 Q3
Congo 146 50 - 29 10 -
Tilapia 20% 146 50 - 29 10 -
Kouilou 15% - - - - - -
Gabon 2.525 9.623 11.731 2.375 8.590 10.387
Banio 100% 429 398 385 429 398 385
Onal 85% 1.001 6.886 8.964 851 5.853 7.62
Omko 100% 1.095 2.339 2.382 1.095 2.339 2.382
Sub Total 2.671 9.673 11.731 2.404 8.6 10.387
Q1 Q2 Q3 Q1 Q2 Q3
Venezuela 8.036 7.272 7.431 2.117 1.916 1.958
Group total 10.707 16.945 19.162 4.521 10.516 12.345
Net production
(entitlement) Production sold
in boep Q1 Q2 Q3 Q1 Q2 Q3
Congo 24 8 - 24 8 13
Tilapia 20% 24 8 - 24 8 -
Kouilou 15% - - - - - 13
Gabon 2.142 7.607 9.186 367 8.58 9.144
Banio 100% 429 398 385 367 433 446
Onal 85% 749 5.151 6.705 - 5.341 6.539
Omko 100% 964 2.058 2.096 - 2.806 2.159
Sub Total 2.166 7.615 9.186 391 8.588 9.157
Q1 Q2 Q3 Q1 Q2 Q3
Venezuela 1.728 1.57 1.634 1.728 1.57 1.634
Group total 3.894 9.185 10.82 2.119 10.158 10.791
The average sale price in the 3rd quarter of 2009 was $67.4/b for Onal and Omko production and $55.08/b for Banio production. In the Congo, production from the Tilapia field (M&P 20%) ceased to be consolidated after 30 April 2009 after Maurel & Prom sold its rights in this permit. Oil and gas production in Venezuela, after oil taxes in kind of 30%, came to 1,634 barrels of oil equivalent per day for the 3rd quarter of 2009. Oil accounted for 50% of production. This activity is not included in the Group's revenues. In Gabon, production from the Onal field was in line with forecasts for July and August 2009. In September, the average level of production was affected by events related to the elections and by interruption to the flow following repairs to Total's export pipeline. At the same time, drilling on the Onal-801 and Onal-1001 wells during the summer brought to light significant levels of oil in these wells that were initially intended to be injector wells. The production collection network has therefore been extended to these two platforms. The equipment necessary for their connection will be delivered by the end of 2009 for effective connection in the 1st quarter of 2010. As a result, injection in this zone will be relocated to an additional platform, PF-1400, which will be constructed in the south of the deposit. A second well, Onal-1002, also intended to be an injector well, showed for the first time mobile oil in the Kissenda play. The possibility of extending Kissenda eastwards is currently being assessed. These new factors will slightly delay the set-up of pressure maintenance by water injection in this part of the field. In other zones, water injection is due to start in mid-November 09. Production in the Onal field is expected to reach 16,000 bopd from mid-2010. At Omko, the Group obtained Exclusive Development Authorisation on 28 September 2009. This authorisation is valid for 10 years and can be renewed once. At that date, the Group owned 85% of the permit (assuming partner back in right). Production at Omko is gradually declining (2,000 bopd in October). The wells Omko-102 and Omko-103 are due to be converted to injectors in 2010. The Omko-301 well found the Grès du Kissenda in an isolated pocket in the south. The well-test results should be known in a few days' time and should determinate the level of the production at the nd of the year. Note that royalties are paid in foreign currency in Gabon and in kind in Venezuela. Also, the "oil profit" due to the government of Gabon is paid in foreign currency for the Banio field and in kind for the Onal and Omko fields. For further information, visit http://www.maureletprom.com 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 Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA
[1] After oil taxes in kind/entitlement and excluding Venezuela (SME).
Contact:
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+33-1-42-72-46-76
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Source: Maurel & Prom
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