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2011-05-18 12:05:54 CEST 2011-05-18 12:06:51 CEST REGULATED INFORMATION Atlantic Petroleum P/F - ÁrsreikningurOperating profit in 1Q 2011 of DKK 26.7MM (1Q 2010: DKK 22.3MM) and profit before taxation of DKK 16.2MM (1Q 2010: DKK 28.4MM)Tórshavn, Faroe Islands, 2011-05-18 12:05 CEST (GLOBE NEWSWIRE) -- Operating profit in 1Q 2011 of DKK 26.7MM (1Q 2010: DKK 22.3MM) and profit before taxation of DKK 16.2MM (1Q 2010: DKK 28.4MM). Cash balance at end of 1Q 2011 was DKK 154.4MM (At year end 2010: DKK 74.3MM). P/F Atlantic Petroleum (OMX: FO-ATLA) today announces its results for the first three months 2011. 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: “Atlantic Petroleum generated DKK 108MM in net cash from operating activities in the first quarter of 2011. Cash balance at the end of the quarter was DKK 154.4MM which means that Atlantic Petroleum is in a net cash position in relation to bank debt by DKK 4.4MM by the end of the quarter. The strong cash position enables Atlantic Petroleum to invest in future growth. With the recent farm in to the UK Orchid prospect and the acquisition of Volantis Exploration adding 15 licenses, we have - including the Statoil operated Brugdan II well on the Faroese shelf - 3 firm exploration wells to be drilled within 12 months. This is just the first step in building an exploration portfolio with the goal of participating in more than 10 exploration wells within the next 3 years. The Volantis acquisition adds a new core area for Atlantic Petroleum that can bring significant upside to the company and the acquisition also brings significant skills and resources to Atlantic Petroleum which will help the company on its upward trajectory.” Highlights Operational -- Total production in 1Q 2011 amounted to 205,000 boe (barrels of oil equivalent) corresponding to an average of 2,277 boepd (barrels of oil equivalent per day) net to Atlantic Petroleum -- Production from the Ettrick field has been relatively stable and within the lower range of expectations. Ettrick production was influenced by technical issues related to gas compression at the beginning of the year -- The Chestnut field is producing at steady rates. Due to lack of water injection the field is producing under certain bottom hole pressure constraints in order to maintain stable conditions until water injection has been reinstated -- Perth field evaluation and development concept selection process is on-going as planned -- On 5th April Atlantic Petroleum´s equity increased from 8.27% to 9.40% in Blackbird. Atlantic Petroleum and Nexen are developing the Blackbird field on a Sole Risk basis after Dana Petroleum elected not to participate in the development. -- On 12th April Atlantic Petroleum farmed into UK licence P.1556, Block 29/1c, Orchid, with a 10% working interest effective 1st March 2011. An exploration well is planned to be drilled in 3Q 2011 -- On 13th May Atlantic Petroleum signed an agreement to acquire privately held Volantis Exploration Limited. Volantis holds 15 exploration licences containing the Pegasus and Fulham discoveries. The acquisition, when completed, more than doubles the number of Atlantic Petroleum licences from 14 to 29. Six staff members from Volantis will join Atlantic Petroleum UK Limited. The deal is subject to completion. -- As a result of the Volantis acquisition Atlantic Petroleum will participate with a 35% working interest in the Tullow Oil operated Foxtrot exploration well on UK licence P.1716, Block 49/29e & 49/30b planned to be drilled in 3Q 2011 Financial -- Revenues in 1Q 2011 of DKK 112.0MM (1Q 2010: DKK 76.9MM). Average realised oil price in 1Q 2011 was 101.5 USD/bbl -- Operating profit (EBIT) in 1Q 2011 of DKK 26.7MM (1Q 2010: DKK 22.3MM) and earnings before interest, tax, depreciation and amortisation (EBITDA) in 1Q 2011 of DKK 64.2MM (1Q 2010: DKK 44.0MM) -- Profit before taxation in 1Q 2011 of DKK 16.2MM (1Q 2010: DKK 28.4MM) -- Net cash from operating activities in 1Q 2011 of DKK 108.0MM (1Q 2010: DKK 47.6MM) -- Cash position at end of 1Q 2011 was DKK 154.4MM (At year end 2010: DKK 74.3MM) -- Total assets at end 1Q 2011 of DKK 670.5MM (At year end 2010: DKK 671.8MM) -- Total shareholder's equity at end 2011 of DKK 378.1MM (At year end 2010: DKK 377.9MM) -- The Company hedged 14% of average monthly production in 1Q and realised a loss of DKK 2.2MM -- Bank debt was DKK 150.0MM by the end of 1Q 2011 of which DKK 97.5MM was long term. A total of DKK 12.3MM was repaid in 1Q 2011 2011 Outlook Operational -- Production is expected to be within the range of 2,100 - 2,600 boepd -- The Blackbird field development is on-going and during the summer the subsea infrastructure will be installed. It is estimated that first oil can be achieved by January 2012 -- Options for reinstating water injection on the Chestnut field are currently being considered, and include the drilling of a sidetrack to the existing water injector well and recompletion of the reservoir section expected in 3Q 2011 -- On the Perth field, the plan is to complete the development concept selection process and to submit a Field Development Plan in 3Q 2011 -- A water injector well is budgeted for 2011 on the Ettrick field and if recommended, dependent on final planning, it will be drilled in 4Q 2011 -- Drill an exploration well on the Orchid prospect in 3Q 2011 -- Drill an exploration well on the Foxtrot prospect in 3Q 2011 Financial -- Operating profit (EBIT) for the year 2011 is expected to be in the range DKK 90MM - 150MM for 2011. This is based on the initially estimated average oil price of 90 USD/bbl in 2011 and average currency exchange rates of USD/DKK 5.50 and GBP/DKK 8.70 -- Investments in exploration and appraisal activities are estimated to be around DKK 47MM for the whole year 2011 -- Investments in field developments are estimated to be around DKK 134MM for the whole year 2011 -- The Company's debt is expected to be reduced by around DKK 50MM in 2011 -- The Company has engaged in oil price hedging to secure a more stable revenue stream. Approximately 13% of current production has been hedged 12 months ahead. Average oil price hedged at is USD 102 per barrel Conference call In connection with the publication of the 1Q 2011 Condensed Consolidated Interim Report Atlantic Petroleum will host a webcast/conference call for analysts and investors. The webcast/conference call will take place on Thursday 18th May, at 14.00 (CEST). 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. 20/2011 Issued 18-05-2011 P/F Atlantic Petroleum Gongin 9 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 |
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