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Thursday 07 February, 2019

Maurel & Prom

Maurel & Prom - Activity and sales 2018: US$440m (+10%)

Maurel & Prom - Activity and sales 2018: US$440m (+10%)

Paris, 7 February 2019
 No. 03-19

Activity and sales 2018: US$440m (+10%)



  • Group sales up 10% to US$440m for 2018
    • The average sale price of oil was US$68.8/bbl in 2018, up 30% compared with 2017
       
  • M&P total working interest production of 22,934 boepd for 2018, down 4% compared with 2017
    • Oil production in Gabon was 20,342 bopd for operated interest (16,273 bopd for M&P working interest), down 19% on the previous year due to reduced evacuation capacity from May to end-November. Since December 2018, production has been evacuated without incident and has started rising again to reach 25,013 bopd for operated interest.
    • Gas production in Tanzania was 83.2 MMcf/d for operated interest (40 MMcf/d for M&P working interest), up 69% compared with the previous year.
       
  • Group reserves at 31 December 2018 – M&P working interest:
    • Gross P1+P2 reserves: 190 MMboe
    • These reserves do not include those of two new projects: Venezuela and Angola.

      


2018 Sales


          
 Q1
2018
Q2 2018Q3 2018Q4 2018 12 months 2018 12 months 2017Chg. 18/17
          
Total production sold over the period, M&P working interest         
million barrels of oil1.71.41.21.4 5.7 6.8-16%
MMBTU3.43.73.93.9 14.9 8.869%
          
Average sale price         
OIL, in US$/bbl66.373.074.362.7 68.8 53.030%
GAS, in US$/MMBTU3.183.173.173.17 3.17 3.151%
          
EUR/USD exchange rate1.231.191.161.14 1.18  1.13 4%
          
SALES (in US$m)         
Oil production12410710295 428 38411%
Gabon115989284 389 361 
Tanzania991011 39 23 
Drilling operations4233 12 16-25%
Consolidated sales (in million US$ )12810910598 440 40010%
Consolidated sales (in million €)104929087 373 3545%
          

The Group’s consolidated sales for 2018 amounted to US$440 million (€373 million), up by 10% on 2017.

The sharp rise in oil prices in 2018 more than compensated for the drop in oil production in Gabon which was caused by technical constraints with the evacuation process. This led to an overall increase in sales.

The average sale price of oil in fiscal year 2018 rose by 30% to US$68.8/bbl versus US$53/bbl in 2017.

The higher demand for gas in Tanzania meant that gas production increased significantly in 2018.

Total average production for the year stood at 83.2 MMcf/d, up 69% on 2017. In the second half of 2018, average production was 87.0 MMcf/d.

2018 Activity

Breakdown of hydrocarbon production in 2018

           
  Q1 2018Q2 2018Q3 2018Q4
2018
 12 months 2018 12 months 2017Chg.18/17
           
Production operated by Maurel & Prom (100%)          
 Oilbopd23,975 19,173 17,40920,876 20,342 24,963 -19%
 GasMMcf/d77.0 81.6 86.787.2   83.2    49.1 69%
 TOTAL  boepd 36,80432,77831,85335,411 34,201 33,1453%
           
Maurel & Prom
share of production
          
 Oilbopd19,18015,33813,92816,701 16,273 19,970-19%
 GasMMcf/d37.039.241.741.9 40.0 23.669%
 TOTAL  boepd 25,34621,87720,86923,686 22,934 23,903-4%
           
  • Gabon

In Gabon, operated oil production in 2018 stood at 20,342 bopd (16,273 bopd for M&P working interest), down 19% on 2017. This was due to the restriction on the volumes evacuated by the pipeline connecting the Ezanga facilities to the Cap Lopez export terminal. These issues began in mid-May 2018 and continued intermittently until the end of November.

  • Monthly operated production in Gabon in 2018 (Mbbl/d)


Production figures in January 2019 reflect the results of the evacuation measures already taken, and take production from new wells into account.

Exports returned to normal at the beginning of December 2018.  Measures to improve evacuation capacity in 2019 were discussed with the pipeline operator.
                   
Drilling activities on the Ezanga permit, which had been halted for almost three years, resumed in 2018 to support the production profile and counteract the fields’ natural depletion. Drilling began in the first half of 2018 and accelerated in August when a second unit went into operation. In total, 9 wells were drilled in 2018. The programme will continue in 2019 with the drilling of high potential wells.

Drilling of Kari and Nyanga Mayombé exploration wells were delayed to 2019 due to a change in the mobilization strategy of the rig to the well sites.

  • Tanzania

In Tanzania, total operated production averaged 83.2 MMcf/d in 2018, or 40 MMcf/d for M&P working interest (48.06%), up 69% on 2017. Operated production in the fourth quarter of 2018 exceeded 87 MMcf/d.

  • France

On the Mios permit, preparations were made to drill the CDN-2 exploration well after 2018 saw the receipt of administrative approvals. Drilling is expected to begin in February 2019.

Group reserves at 31 December 2018 – M&P working interest

The Group's reserves correspond to the volumes of recoverable hydrocarbons currently in production plus those revealed by discovery and delineation wells that can be operated commercially. These reserves were certified by DeGolyer and MacNaughton in Gabon and RPS Energy in Tanzania as at 31 December 2018.

Gross reserves
M&P working interest
Oil (MMbbl)Gas (Bcf)(1) MMboe
 GabonTanzania  
01/01/2018171.3 265.4  215.5 
production-5.9 -14.6   
revision-14.2 -19.2   
31/12/2018151.1 231.6  189.7 
 o/w gross P1 reserves117.1 139.3  140.3 
or77.5%60.2% 74%

As at 31 December 2018, gross P1+P2 (2P) reserves amounted to 190 MMboe, the equivalent of 172 MMboe in M&P share, net of royalties.

In Gabon, 2P reserves net of royalties and restated for 2018 production amounted to 133 MMbbl as at 31 December 2018, with P1 reserves accounting for 77% of that total. This revision of 2P reserves was due to an apparent faster decline on the Onal field in 2018 which is expected to be offset by new drilling in 2019.

As at 31 December 2018, the Group also had gas reserves of 232 Bcf.

The significant increase in production in 2018 made it easier to assess the reservoir’s behaviour and led to a more accurate reserve estimate.

New projects

In Angola, the period for possible pre-emptions regarding the acquisition of the 20% stake held by AJOCO in the two offshore blocks ended in December 2018. Finalisation of this acquisition is now subject to receiving administrative approvals from the Angolan Ministry of Petroleum and national concessionaire, Sonangol EP.

In Venezuela, acquisition of Shell's 40% stake in Petroregional del Lago Mixed Company was finalised on 20 December 2018.  Due regard is being taken to the initialization of activities within the current events related to Venezuela.

French  English
pieds cubespccfcubic feet
pieds cubes par jourpc/jcfpdcubic feet per day
milliers de pieds cubeskpcMcf1,000 cubic feet
millions de pieds cubesMpcMMcf1,000 Mcf = million cubic feet
milliards de pieds cubesGpcBcfbillion cubic feet
barilbbblbarrel
barils d'huile par jourb/jbopdbarrels of oil per day
milliers de barilskbMbbl1,000 barrels
millions de barilsMbMMbbl1,000 Mbbl = million barrels
barils équivalent pétrolebepboebarrels of oil equivalent
barils équivalent pétrole par jourbep/jboepdbarrels of oil equivalent per day
milliers de barils équivalent pétrolekbepMboe1,000 barrels of oil equivalent
millions de barils équivalent pétroleMbepMMboe1,000 Mbbl = million barrels of oil equivalent



For more information, visit www.maureletprom.fr

Contacts

MAUREL & PROM
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45                                                 
[email protected]                                                     

NewCap
Financial communications and investor relations                
Julie Coulot/Louis-Victor Delouvrier
Tel: +33 (0)1 44 71 98 53                                                 
[email protected]

Media relations
Nicolas Merigeau
Tel: +33 (0)1 44 71 94 98
[email protected]



This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.



Maurel & Prom is listed for trading on Euronext Paris
CAC All-Share – CAC Oil & Gas – Next 150 - PEA-PME and SRD eligible
Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA





 

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