PA Resources to recognise SEK 1,750 – 1,850 million of one-off costs
The oil and gas group PA Resources will recognise non-cash, one-off costs in the
form of impairment and write-downs of approximately SEK 1,750 – 1,850 million
net after taxes in the financial result for the fourth quarter 2011.
PA Resources' ongoing annual update of oil and gas reserves as well as
impairment tests have indicated a need to impair the book value of assets in the
Republic of Congo. The impairment is primarily due to a reduction of reserves at
the Azurite field, resulting in an impairment of SEK 1,450-1,550 million. In
addition, a write down of the production well at the Didon North in Tunisia will
be done as well as the remaining book value of the two divested Tunisian fields
El Bibane and Ezzaouia.
Total write down and impairment losses are estimated at present to be between
SEK 2,050 – 2,150 million. Net, after taxes, the costs amount to between SEK
1,750 – 1,850 million. These costs are non-cash items and the final
determination of amount will be reported in the Year-end Report for 2011.
- As previously reported, oil production at Azurite Field did not reach expected
levels in 2011 and as a result a corresponding, substantial reduction in
reserves now leads to this impairment. Group cash flow is unaffected and is
expected to be positive in 2012 thanks to production volumes from the Aseng
Field in Equatorial Guinea in combination with significantly lower annual
investments. Work continues in the Mer Profonde Sud licence to identify
potential prospects which could form tie backs to the Azurite production vessel
in the future, says Bo Askvik, President and CEO at PA Resources.
Stockholm, 23 January 2012
PA Resources AB (publ)
For additional information, please contact:
Bo Askvik
President and CEO, PA Resources AB
Mobile: +46 70 819 59 18
E-mail: info@paresources.se
or
Nicolas Adlercreutz
CFO, PA Resources AB
Mobile: +46 70 587 44 88
PA Resources AB (publ) is an international oil and gas group which conducts
exploration, development and production of oil and gas assets. The Group
operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United
Kingdom, Denmark, Greenland, Netherlands and Germany. PA Resources is producing
oil in North Africa and West Africa. The parent company is located in Stockholm,
Sweden.
PA Resources’ net sales amounted to SEK 2,227 million during 2010. The company
is listed on the NASDAQ OMX in Stockholm, Sweden (segment Mid Cap). For
additional information, see www.paresources.se.
The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 23.00 CET on 23 January 2012.
