Tórshavn, Faroe Islands, 2014-08-29 08:01 CEST (GLOBE NEWSWIRE) --
P/F Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces its results for the first six months of 2014. 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:
“Our production was in line with our expectations in the first half of 2014, and our development project Orlando is progressing with a target first production date in 2016.
The commercial progress between Perth and Lowlander equity holders is a big step forward towards developing Perth. We look forward to working with Parkmead and Faroe Petroleum to mature the project towards a development and create value. Perth holds 5.1MMboe of contingent resources net to Atlantic Petroleum.
On the exploration front we are one of the most active companies in our peer group. We are currently drilling the Pegasus well in the UK, which will be tested and suspended for later use if successful. We will also spud the potentially high impact Ivory well in Norway in September. Both wells hold a large upside with a limited downside.
Our drilling programme for 2015 and beyond is firming up. In the UK we plan to drill the Parkmead operated Skerryvore well and the potential multiple TCF Centrica operated well Aurora in 2015. We are also firming up our Norwegian programme where we have the Napoleon North well as a candidate for 2016 drilling, and we will potentially be looking for further short term opportunities.”
HIGHLIGHTS & OUTLOOK
Production
Production for the first 6 months was 319,000 boe corresponding to an average of 1,762 boepd net which is within target
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Chestnut
The Hummingbird FPSO contract and hence Chestnut field life has been extended, enabling production to at least March 2017. Further contract extensions are being evaluated along with other long term options for the field -
Ettrick
The Aoka Mizu FPSO contract was extended to March 2016. Further extension rights exist which can be exercised in future years. The field is producing again following a planned extended shutdown over the summer to help extend field life -
Blackbird
The 20/02a-B3 production well was spudded in April and successfully completed and tested in July achieving rates of over 7,000 bbls/day. The well has now been tied back into the Aoka Mizu FPSO facilities and full production has commenced
2014 Targets
- Production average per day between 1,650 – 1,900 boepd net for the year
Development
The Group has currently three UK fields under development or near development
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Orlando
The field was sanctioned for development in 2013. Discussions are in progress with the operator of the Ninian Central Platform to secure commercial terms for the modifications to the platform. First oil is expected in 2016 -
Kells
Work is on-going to re-submit an FDP in 2014, with first oil planned in late 2016 or 2017. Atlantic Petroleum holds 25% in this licence -
Perth
Joint studies ongoing between Faroe Petroleum (operator of Lowlander) and the Perth group to determine the feasibility of a joint Perth/Dolphin/Lowlander development.This appraise phase is expected to be complete by year end 2014. Owners have agreed the commercial and ownership framework and a Heads of Agreement for the Joint Development of the fields signed, which covers equity alignment or “Unitisation” process, budget and management of the joint near term work programme, and plans for securing finance for the project.
Exploration
Atlantic Petroleum’s exploration portfolio has several high profile prospects identified.
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Ivory
Atlantic Petroleum holds 9% of the participating interest in this high profile well. The well is expected to be spudded in September with the West Navigator -
Pegasus
The well spudded in July and is currently drilling. If success-ful the well will be tested. This will have a large impact on the future potential of the Pegasus complex. Result of the well is expected in September
Likely 2015 wells
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Aurora
Large intra-carboniferous prospect located in the Southern North Sea, close to the Breagh Field -
Skerrywore
Prospect located in Central North Sea which is expected to be drilled in 2H 2015
2014 Targets
- Drill 4 exploration/ appraisal wells in 2014 targeting 86MMboe of net unrisked resources
Financial
The Group is well funded with a significant cash balance, low debt and strong cash flow from three producing fields.
- EBITDAX DKK 81.2MM (1H 2013 DKK 120.7MM)
- Cash and cash equivalents DKK 194.6MM (End 2013 DKK 184.6MM)
- Revenue DKK 198.2MM (1H 2013 DKK 214.2MM)
- Exploration expense DKK 104.1MM (1H 2013 DKK 74.5MM)
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General and administration costs
DKK 25.4MM (1H 2013 DKK 28.0MM) - Result after taxation DKK -36.0MM (1H 2013 DKK -2.5MM)
2014 Targets
- EBITDAX in the range DKK 125MM - 175MM
Live webcast/Conference Call:
In connection with the publication of the 2Q 2014 Condensed Consolidated Interim Report Atlantic Petroleum will host a live webcast followed by a conference call.
The live webcast/conference call will take place on Friday 29st May 2014 at the local time stated below:
- Tórshavn/London 9 AM
- Oslo/Copenhagen 10 AM
To view the live webcast please enter our website www.petroleum.fo and follow the link.
Atlantic Petroleum in brief:
Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds around 45 oil and gas licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.
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. 36/2014
Issued 29-08-2014
P/F Atlantic Petroleum
Yviri við Strond 4
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
