The second quarter of 2018 (first quarter 2018)
· Production from Block 3&4 Oman amounted to 11 733 barrels per day (11 574 barrels per day)
· Revenue and other income amounted to $ M 36,4 ($M $ 34,2)
· EBITDA amounted to usd 24,3 ($M 21,5)
· Profit after tax amounted to usd 15,0 ($M $ 9,0)
· Earnings per share amounted to EUR 0,44 (US $ 0,27)
· Three successful utvärderingshål drilled on the findings made in 2017, with results in line with, or better than, expected
· 3D-seismikprogrammet has been expanded by 750 km2 and now includes a total of 2 750 km2
$ M (unless otherwise stated)
The first half of the year
The first half of the year
The full year
Average daily production from Block 3&4 Oman net, before government take, bbl
Production, net of state’s share, barrel
1 096 887
1 165 148
2 308 342
Sales, net of state’s share, barrel
1 041 192
1 130 031
2 316 404
Average selling price per barrel, USD
Income and other revenue
The end result
Earnings per share (diluted), USD
Investments in oil and gas properties
Letter to shareholders
Dear friends and investors,
The results from the utvärderingsborrningarna on last year’s findings, in line with, or better than, expected
Several thousand square kilometres of new 3D seismic around the producing areas, is collected and interpreted
Production in line with expectations and sold at a favourable price
A good quarter for our huvudtillgång, Block 3&4 onshore Oman!
The evaluation programme is important in order to develop the contingent resources to reserves and increase production. 3D seismiken is important to be able to identify new potential oil fields in order to control the exploration program on Blocks 3&4. Production and sales is, of course, of the utmost importance in order to generate the funds needed for Tethys Oil’s continued expansion and to enable us to continue to deploy capital to our shareholders.
Work with the interim production facility (Early Production Facility «EPF») on the Ulfa is going on. Some parts of the course has taken has taken longer than planned and we now expect that the EPF:a placed in service during the fourth quarter of 2018, around four to six weeks later than planned. Smooth in operation, so will the EPF:a to enable more utvärderingsborrningar on the Ulfa and Samah-the findings are used in production. It will also enable capacity, which is currently used on the production facilities on the Farha for long-term production test from the Ulfa, are released and can once again be used for production from the Farhafältet.
Our oil production in Oman increased slightly during the second quarter of 2018 and amounted to 11 733 barrels of oil per day, compared with 11 574 barrels of oil per day in the first quarter of 2018. The production is in the lower half of our guided tours on a monthly average production of between 11 000 and 13 000 barrels of oil per day. As the year passes, we expect the monthly average production increases towards the higher half of the range. The increase is expected to come when the EPF of the Ulfa are in operation.
The second quarter in focus
After the price of oil and production increases, we are pleased to be able to report Income and other revenue of usd eur 36.4, an increase of 6 percent compared with the first quarter of 2018. Our EBITDA increased by 13 percent and amounted to usd 24,3. Our investments in oil and gas properties amounted to MUSD 13.2, the in line with the $ M 13,8 during the first quarter. During the second quarter will be distributed with SEK 5.00 per share, a total of MUSD 19, to the shareholders. Subsequently, the amounts of our cash and cash equivalents at the end of June to usd 35.8 the.
We have higher operating costs per barrel this quarter than we previously expected. This is partly due to uppdateringsarbeten implemented on our older fields. Our assessment is that the operational costs per barrel will reduce as soon as the EPF:a on Ulfa can be put into operation and the full effect of the uppdateringsarbetena is reflected in the production figures. However, and as we previously guided, we expect that the operational costs per barrel in 2018 will be slightly higher than in previous years.
While Blocks 3&4 will remain our huvudtillgång, so increases the work on our exploration license, Block 49 in the southern Oman on the border with saudi Arabia. We are the operator with 100% interest in this license (15 439 km2) and it is a pleasure to once again be operators on a license in Oman. We are on a good way to establish contacts with local communities and organisations.
The first part of the work programme, reprocessing and reinterpretation of existing seismic data is in progress. In the first phase, we process around 40 lines of 2D seismic, over 1 000 km from the seismikinsamlingar of different age. This gives us the seismic maps with better resolution, which will make it possible for us to search for objectives that have not been visible for the previous operators. We are still in the beginning of our work, but so far we have not been disappointed by what we’ve seen. Once the reprocessing has been completed, the next step is to determine if and where new seismic is needed to further increase our understanding of where in the licence it is most likely to make a commercial oljefynd.
So, continue to follow us — when the older fields on Blocks 3&4 are maturing, new fields are put into production and the new seismic allows for new oljefynd in the coming months and years, and prospekteringsarbete on the Block 49 is taking off with Tethys Oil as operator, then, Tethys Oil on the way to clearly increase the company’s footprint in the Sultanate of Oman.
Stockholm in August 2018
This report has not been subject to review by the Company’s auditors.
For further information, please contact the
Magnus Nordin, managing director, tel.: +46 8 505 947 00
Jesper Alm, CFO, tel.+46 8 505 947 00
This information is such information Tethys Oil AB (publ) is obliged to publish under the securities market act, the Information was submitted, through the above contacts in the government, for publication on 14 August 2018 there from 07: 30 CEST.
Date: August 14, 2018
Time: 10.00 CET
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Source: Tethys Oil ab via Globenewswire