Tórshavn, Faroe Islands, 2011-11-02 11:13 CET (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (OMX: FO-ATLA) today announces its results for the first nine 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:
“In spite of lower than expected production in 3Q of 2011, Atlantic Petroleum has had a strong quarter with an EBIT of DKK 32.1MM which means that the EBIT for the first nine months of 2011 of DKK 109.1MM has surpassed the lower end of our EBIT forecast for the full year. We now expect the full year EBIT to be towards the upper end of our previous guidance of between DKK 90MM – 150MM.
We look forward to getting Blackbird on stream in the fourth quarter and to re-instating full production on Chestnut. We also look forward to the spudding of the high impact Orchid exploration well operated by Summit in 4Q. The Orchid well will be succeeded by the Faroes Brugdan 2 well and the Spaniards well in 2012.
The submission of the Perth FDP 30th September 2011 was a big step forward in getting Perth developed. Perth is proposed to be developed using a Floating Production Storage Offtake Facility (FPSO), targeting mid case resources of 27.2 mmboe estimated by the operator DEO, with first oil now estimated in H1 2014.
Atlantic Petroleum is investing in the future at the moment with the near term development of discovered resource and the high upside exploration and appraisal programme, and we are well positioned to do so with the strengthened license portfolio and the strengthened cash position.”
Highlights
Financial
- Operating profit (EBIT) in 3Q 2011 of DKK 32.1MM (3Q 2010: DKK 35.6MM) and DKK 109.1MM in the first nine months of 2011 (The first nine months of 2010: DKK 93.6MM)
- Profit before taxation in 3Q 2011 of DKK 43.5MM (3Q 2010: DKK 4.1MM) and DKK 101.6MM in the first nine months of 2011 (The first nine months of 2010: DKK 109.2MM)
- Net cash from operating activities in first nine months of 2011 DKK 234.7MM (First nine months 2010: DKK 176.7MM)
- Cash position at end September 2011 was DKK 158.4MM (At year end 2010: DKK 74.3MM)
- Bank debt of DKK 140.6MM at end September 2011 (At year end 2010: DKK 162.3MM)
- Total assets at end September 2011 of DKK 757.9MM (At year end 2010: DKK 671.8MM)
- Total shareholder’s equity at end September 2011 of DKK 403.0MM (At year end 2010: DKK 377.9MM)
- The Company holds 130,514 of own shares corresponding to 4.98% of Company shares, equating to DKK 17.1MM. At the end of September 2011 the share price was DKK 131.00
Operational
- Total production in the first nine months of 2011 was 558,000 boe (barrels of oil equivalent) corresponding to an average of 2,044 boepd (barrels of oil equivalent per day) net to Atlantic Petroleum
- Production from the Ettrick field in the 3Q was as expected constrained by shutdowns for annual maintenance and the tie in of the Blackbird field
- The Chestnut field is producing at reduced rates until the water injection capability is re-instated. Full production is expected to re-commence later in 2011 when the water injection well has been side-tracked
- Blackbird tie-in to the Ettrick field is progressing well and first oil is expected in 4Q 2011
- The Perth Field Development Plan was submitted to the authorities for consent on the 30th September
- Atlantic Petroleum participated in the Foxtrot exploration well on UK licence P.1716. The well encountered water wet sands at the Bunter horizon. The well was suspended on the 20th August with a view to later re-entry if technical work confirms that a deeper Rotliegend target is viable
2011 Outlook
Financial
- Operating profit (EBIT) for the year 2011 is expected to be in the upper range of our previous guidance of DKK 90MM – DKK 150MM
- Investments in exploration and appraisal activities are estimated to be around DKK 50MM for the whole year 2011
- Investments in field developments and producing assets are estimated to be around DKK 135MM for the whole year 2011
- The Company’s bank 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 27% of current production has been hedged 12 months ahead. Average oil price hedged at is USD 106 per barrel
Operational
- Production in 2011 is expected to be in the range 2,000 - 2,300 boepd - compared to previous guidance of 2,100 - 2,600 boepd. The reason for lower than initially expected production is mainly due to deferred production from the Chestnut field pending restoration of water injection
- The re-entering of the Chestnut water injection in order to side-track the well has commenced. The plan is to re-establish water injection later this year and re-instate production from both wells.
- A second water injection well on the Ettrick field will also be drilled. It is expected to commence drilling in December 2011 or early 2012
- The Blackbird field development is progressing well and first oil is expected in 4Q 2011
- The Perth Field Development Plan was submitted to the UK authorities on the 30th September 2011. Consent to the plan is expected in approximately six months. The plan envisages the initial phase of development to consist of three production wells and two water injection wells tied back to a floating production storage and offloading vessel (FPSO)
- The drilling of an exploration well on the Orchid prospect on UK licence P.1556 where Atlantic Petroleum has a 10% working interest, and initially expected to spud in October, is now expected to spud in December 2011 due to the late arrival of the semi-submersible drilling rig Sedco 711
- Drilling of an appraisal well on the licence P.1724 Pegasus discovery is being considered for 2012
Conference call
In connection with the publication of the 3Q 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 Wedenesday 2nd November, at 1.00 PM 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. 42/2011
Issued 02-11-2011
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
