Tórshavn, Faroe Islands, 2012-11-28 09:01 CET (GLOBE NEWSWIRE) -- Operating profit in 3Q 2012 of DKK 55.7MM (3Q 2011: DKK 32.1MM) and profit before taxation of DKK 48.9MM (3Q 2011: DKK 43.5MM). Cash balance at end of 3Q 2012 was DKK 298.5MM (At year end 2011: DKK 114.3MM)
P/F Atlantic Petroleum (OMX: FO-ATLA) today announces its results for the first nine months of 2012. This company announcement should be read in conjunction with Atlantic Petroleum’s Condensed Consolidated Interim Report attached to this announcement.
Ben Arabo, Atlantic Petroleum’s CEO, stated:
“A stellar production asset performance combined with higher than expected oil price has given Atlantic Petroleum a record group performance in the first 9 months of 2012. Our production guidance will be increased to 900,000 – 940,000 boe and our EBITDAX guidance will be increased to 375MM to 425MM. The existing portfolio combined with recent UK 27th round awards and the recent entry into Norway will enable Atlantic Petroleum to populate the future pipeline with quality exploration projects. This enables Atlantic Petroleum to focus on looking at new development or production opportunities to complement our exploration and appraisal portfolio and secure production in the short to medium term”.
Highlights
Record performance for the Group in 3Q 2012
- Revenue in 3Q 2012 DKK 157.9MM
- EBIT DKK 55.7MM
- EBITDAX DKK 111.9MM
- Cash generated from operations in the first nine months 2012 was DKK 319. 0MM, a new record
- Overall, 2012 first nine months performance exceeds the 2011 full year
- Cash and cash equivalents at end 3Q 2012 was DKK 298.5MM (DKK 114.3MM end 2011). Cash and cash equivalents at 28th November 2012 were DKK 304.6MM
- Production in 3Q 2012 amounted to 238,000 boe corresponding to an average of 2,587 boepd net to the Group
- Production from the Ettrick field was relatively stable and towards the higher end of expectations. Operator Nexen continues to look at ways to maximise field reserves
- Blackbird field production has been stable throughout the last quarter. A water injector, spudded in July 2012 has been completed. Work continues on the tie-in of Blackbird water-injection to the Aoka Mizu facility
- The Chestnut field production has been stable and at the high end of expectation
- The Perth field development process has been delayed by the Parkmead acquisition of operator DEO Petroleum. Parkmead and the Joint Venture are in discussion with DECC over the forward plan for the Perth development
- The Faroes wildcat exploration well Brugdan II well on Licence L006 was spudded in June. As of November 2012 the well has been suspended until 2013
- Agreement has been reached to acquire a 20% stake in P1610, Block 13/23a and P.1766, Block 13/22d containing the Magnolia prospect in return for carrying a share of the cost of the initial exploration well. The equity was acquired from Summit Petroleum. The Magnolia exploration well will be drilled in 1Q 2013
- Agreement has been reached to acquire a 20% stake in P.1100, Blocks 20/4a and 20/9a containing the Polecat discovery in return for carrying a share of the cost of an appraisal well. The equity was acquired from Nexen Petroleum UK Limited. The Polecat appraisal well spudded on the 23rd October. The well reached a total depth of 10,850 feet and has been plugged and abandoned following wireline logging. Following the well result Atlantic Petroleum estimates gross contingent resources of 15-20 mmboe on the Polecat structure and will discuss potential development options with the operator.
- Atlantic Petroleum has been offered for award four licences in the UK 27th Licensing Round. five applications are still outstanding
- Atlantic Petroleum has established a subsidiary in the Netherlands in preparation for activities in the country
- Average realised oil price was USD 108.4/bbl
- Over the next 12 months the Group has hedged on average 20% of expected oil production at an average oil price of USD 111.76/bbl
2012 Outlook
- Production for the year is expected to exceed the current guidance range of 800,000 – 870,000 boe. New guidance is in the range 900,000 – 940,000 boe
- EBITDAX for the year is expected to exceed the current guidance range of DKK 270MM – DKK 350MM. New guidance is in the range DKK 375MM – DKK 425MM
- The Blackbird field development will be completed with the drilling and tie-in of a water injector well in 4Q 2012
- Planning is underway for further production well targets on the Ettrick field, with spud sometime in 2013
- Chestnut production is expected to be above initial expectations, as a new flare limit allowing increased oil production has been approved by DECC. The operator plans to implement technical and commercial improvements for maximizing recovery
- On the Perth field, await results of discussion between the Joint Venture and DECC over future plans.
- Plan for the spudding of the Magnolia exploration well in 1Q 2013
- The recently announced Norwegian acquisition of Emergy Exploration AS, provides Atlantic Petroleum with access to a very attractive region to operate in with significant remaining exploration potential, stable operating environment and a fiscal regime that is particularly attractive for exploration activities. In particular the Group will participate in the 22nd Norwegian Licensing Round
- The Group continues to actively evaluate a number of business development opportunities across the value chain to enhance and build upon existing activity
Conference call
In connection with the publication of the 3Q 2012 Condensed Consolidated Interim Report Atlantic Petroleum will host a webcast/conference call for analysts and investors.
The webcast/conference call will take place on Wednesday 28th November, at 12.00 noon (GMT). If you would like to participate in the conference call, please dial the relevant number below a few minutes before the conference starts:
- DK: +45 70140453
- UK: +44 (0) 2071086303
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 Ben Arabo, CEO, tel +298 350100 (ben.arabo@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. 36/2012
Issued 28-11-2012
P/F Atlantic Petroleum
Yviri við Strond 4, 3rd floor
P.O. Box 1228
FO-110 Tórshavn
Faroe Islands
Telephone +298 350 100
Fax +298 350 101
Website: www.petroleum.fo
E-mail: petroleum@petroleum.fo
