Tórshavn, Faroe Islands 19th May 2010 - Atlantic Petroleum (OMX: FO-ATLA) today
announced its results for the first three months 2010. This company
announcement should be read in conjunction with Atlantic Petroleum's Interim
Consolidated Financial Statement attached to this announcement.
Sigurð í Jákupsstovu, Atlantic Petroleum's CEO, stated:
“We are pleased to announce the result for 1Q 2010. With two fields now in
production and a quarterly operating profit of DKK 22MM Atlantic Petroleum's
position as a North Sea oil and gas exploration and production company has been
underpinned. The strong positive cash flow is being used to reduce our debt and
to position the Company for further growth through participation in exploration
and appraisal programmes and by seeking suitable acquisition opportunities. We
are looking forward to results from the Blackbird appraisal well being drilled
this summer, which will dictate further development decisions.”
Highlights
Operational
• Total production in first quarter of 2010 amounted to 178,000 barrels of oil
equivalents (boe) corresponding to an average of 1,977 boepd net to
Atlantic
Petroleum. Production from the Ettrick field amounted to some 60,000
boe and
from Chestnut to about 118,000 boe
• Drilling operations on two additional production wells on the Ettrick field
have been completed. One involved sidetracking the 20/2a-E3 well,
drilled in
2007, to a more favourable location in the reservoir. The second well
was
drilled in the northern part of the Ettrick field. The results of both
wells
are within or better than pre-drill expectations. It is planned that
the wells
will be tied back and ready for production in July 2010
• The Chestnut field is producing at steady rates and up to now production
performance for 2010 has exceeded expectations
• The Marten license has been extended 2 years to a July 2012 expiry
• Ben Arabo has been appointed as Chief Executive Officer from 1st August 2010.
Sigurð í Jákupsstovu will resume the position as Chief Operating
Officer
Financial
• Revenues in 1Q 2010 of DKK 76.9MM (1Q 2009: DKK 26.6MM)
• Operating profit (EBIT) in 1Q 2010 of DKK 22.3MM (1Q 2009: DKK -15.4MM)
• Profit before tax in 1Q 2010 of DKK 28.4MM (1Q 2009: DKK 8.7MM)
• Profit after tax in 1Q 2010 of DKK 20.5MM (1Q 2009: DKK 15.3MM)
• Net cash from operating activities in 1Q 2010 of DKK 47.6MM (1Q 2009: DKK
2.7MM)
• Average realised oil price was 77 USD/bbl in 1Q 2010 compared to 76 USD/bbl
in 4Q 2009
• Total assets at end 1Q 2010 of DKK 659.0MM (At year end 2009: DKK 646.8MM)
• Total shareholder's equity of DKK 298.4MM (At year end 2009: DKK 279.0MM)
• Administration costs reduced to DKK 3.6MM from DKK 5.3MM in 1Q 2009
• The Company has in 1Q 2010 paid down debt of DKK 25.0MM. In 2010 a total of
DKK 46.7MM debt has been repaid
2010 Outlook
Operational
• Production is expected to stabilise within the range of 2,500-3,000 boepd as
the Ettrick field performance is expected to improve over the year
• Unchanged estimated total production in the range of 725,000 to 850,000
barrels net
• The Blackbird appraisal well will be drilled over the summer and the results
will decide whether the proven volumes are sufficient to warrant the
field to
be developed as a satellite to the Ettrick field 6 km to the north
• Complete evaluation of Perth feasibility study
• Company is actively pursuing opportunities to increase license portfolio
• Further evaluation of the commercial potential of the Helvick, Ardmore and
Hook Head discoveries in the Irish Standard Exploration License 2/07
will be undertaken
Financial
• Maintain expectation of EBIT to be in the range DKK 70-90MM for 2010 (2009
DKK -75.6MM realised). This is based on the initially estimated
average oil price of 75 USD/bbl in 2010 and an average currency
exchange rate
of DKK/USD of 5.21, compared to the realised average oil price of 77
USD/bbl and DKK/USD exchange rate of 5.43. Production volumes for the
year are
expected to be in the range of 725,000 and 850,000 barrels net to
Atlantic Petroleum
• The Company's debt is expected to be reduced by DKK 120MM in 2010
• Investments in exploration and appraisal activities are estimated to be
around DKK 36MM for the whole year 2010
• Investments in field developments are estimated to be around DKK 47MM for
the whole year 2010
• The majority of the short term bridge loan facilities have been rolled into a
five year senior loan facility
• The Company has engaged in oil price hedging to secure a more stable revenue
stream. Approximately 6 percent of current production has been hedged
12 months ahead. Average oil price hedged is 88 USD/bbl
Conference call:
In connection with the publication of the 1Q 2010 interim report Atlantic
Petroleum will host a conference call for analysts and investors.
The conference call will take place on Thursday 20th May, at 14.00 (CET). If
you would like to participate in the conference call, please dial the relevant
number below a few minutes before the conference starts:
- Danish +45 32 71 47 67
- US +1 718 354 1226
- Other international +44 207 509 5139
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 Sigurð í Jákupsstovu, CEO, tel +298 350
100 (sigurdj@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 11/2010 Issued 19-05-2010
P/F Atlantic Petroleum Telephone +298 350 100
Gongin 9 Fax +298 350 101
P.O.Box 1228 petroleum@petroleum.fo
FO-110 Tórshavn www.petroleum.fo
Faroe Islands
Profit before taxation for 1Q 2010 of DKK 28.4MM. Best interim pretax result since company inception in 1998
| Source: Atlantic Petroleum P/F
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