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Maurel & Prom : 2014 Results

Paris, 26 March 2015

No. 07-15


In a general economic climate shaken up by the fall in oil prices, and with
the need to protect its balance sheet, in 2014 Maurel&Prom proved its ability

1 Strictly manage its cash flow:

1 Increase in the Group's available cash by €38 million to €229 million;
2 Renegotiation of the debt term (maturities extended)
3 Demonstrate the resistance of its EBITDA (€352 million)
4 Consolidate its operations by abandoning non-strategic exploration projects
and focusing on its producing assets

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| |

| Units 2014 2013* Change |
| |
| Sales €M 550.4 570.7 -4% |
| EBITDA 351.9 421.7 -17% |
| Write-offs -113.4 -18.9 N/A |
| Amortisation, depreciation and other adjustments -98.0 -64.5 N/A |
| EBIT 140.6 338.2 -58% |
| Financial income €M -10.8 -67.1 -84% |
| Net income, Group share €M 13.2 62.8 -79% |
| |
| Investments €M 331 254 +30% |
| Cash at period-end €M 229 191 +20% |
| |
| P1 reserves at 1/1/2015 Mboe 148.5 141.7 +5% |
| P1+P2 reserves at 1/1/2015 Mboe 207.1 184.0 +13% |
| |
| * Restated to reflect the change in accounting method. |

Jean-François Hénin, Chairman:

"The entire oil industry was shaken up in the second half of 2014 after the
collapse of oil prices in the summer. This drop, which has continued into
2015, weighs on the Group's operating profitability and has led us to
implement measures to sustain our performance and thus the Company's value.
This has involved:

1 restructuring the entire debt and in particular extending its maturity;
2 drastically reducing costs;
3 strict arbitrage of current investments.

The results presented today are very much characterised by this environment
and the measures we have taken to address it.

We are now focusing on assets with strong potential, namely those already in
production plus the two discoveries made in Gabon, which we will be
developing, and on gas assets in Tanzania, which will contribute to cash flow
as from 2015.

The goal of this adaptation strategy is to maintain the Group's financial
health so that we can take advantage of acquisition opportunities that may
arise from a weak oil-industry environment."


In 2014, the Group restructured the maturities of its various lines of credit.
No repayments of principal are forecast before the end of 2016, and the
covenants relating to the new $400-million line of credit are being complied
with. The Group also had cash of €229 million at 1 January 2015. The OCEANE
2015 bond matures in July 2015 in the amount of €70 million.

Maurel&Prom will continue to pursue its growth strategy by optimising its
mining portfolio following the renegotiation contract in Gabon, controlling
investment, and increasing production in the coming months.
The exploration programme set up by the Company for fiscal year 2015 takes
account of the new economic environment, especially the sharp drop in the
price of Brent, which weighs on our ability to generate cash flow. The
programme addresses the mandatory work that must be carried out on certain
permits in order to retain them and includes the work already under way to
enhance the Group's mining portfolio, particularly in Gabon following the
recent discoveries. A budget of $44 million, versus €118 million in 2014, has
been allocated to exploration, which may be revised during the year depending
on the results of studies and drilling operations and also on changes in the
economic environment.

Investment for production and development for an amount of €186 million ($207
million) is scheduled for 2015, primarily in Gabon and Tanzania.

In the current economic climate, the Group is studying the shutdown and/or
sale of some of its subsidiaries and marginal holdings.

The first quarter of 2015 has been jointly impacted by a lower-price effect
and a quantity effect related to operating challenges encountered by the
operator of the pipeline linking Coucal to Cap Lopez, preventing the Group
from producing at the normal pace. Average production for January and
February 2015 was 16,178 bopd and 21,624 bopd respectively, with a sales
price of $44.1/bbl and $53.5/bbl respectively. Production is expected to
increase substantially throughout fiscal year 2015, depending on the extent
of the ramp-up of the water injection programme, which will be spread over
the next twelve months at least. The start-up of recent discoveries will
contribute to this increase as connections are established.

New Exploration and Production Sharing Contract (PSA) in Gabon
The new "Ezanga" permit, which replaces the "Omoueyi" permit, was awarded to
Maurel&Prom Gabon by the Gabonese Republic under a contract approved by
decree on 11 March 2014.

This new PSA formalises a mutually beneficial partnership between the Gabonese
Republic and Maurel&Prom for a 20-year period, automatically renewable for
the same duration.

It also renews the five existing Exclusive Exploitation Authorisations (AEEs)
for the same duration. The interest of the Gabonese Republic is increased,
mainly on account of its share in the permit having been raised from 15% to
20%, with a proportional increase in mining royalties.

Oil discoveries in Gabon
The Mabounda-1 (EZMAB-1D) and Niembi-1 (EZNI-1D) exploration wells located on
the Ezanga permit in Gabon were drilled on independent structures to a total
depth of 2,060 metres and 2,425 metres respectively. A 24-hour production
test was conducted on each of the two wells in February 2015 with the
following positive results:

* the Grès de Base test on the EZMAB-1D well showed a stabilised eruptive
flow of 1,002 bopd of anhydrous oil with surface pressure stabilised at
nine bars. The oil has a density of 28° API;
* the test at the Lower Kissenda summit on the EZNI-1D well revealed a
stabilised eruptive flow of 1,162 bopd of anhydrous oil with surface
pressure stabilised at 40 bars. This oil has a density of 35° API. The
other hydrocarbon reservoirs of Upper Kissenda and at the base of Lower
Kissenda have different pressure systems and will be tested later.

The Group is now looking into all possibilities to connect to the existing
treatment and evacuation network so that production can be as fast as
Signature of a gas sales agreement in Tanzania
The Company, along with its Mnazi Bay permit partners Wentworth and Tanzania
Petroleum Development Corporation (TPDC), signed a sales and purchase
agreement on 12 September 2014 for the long-term sale of natural gas from the
Mnazi Bay and Msimbati fields in southern Tanzania. The partners are
contracted to supply up to a maximum of 80 mmcf of natural gas per day during
the first eight months, with the option to increase production over time to a
maximum of 130 mmcf per day for a period of up to 17 years.

The sales price was set at US$3.07 per mcf, increasing with the United States
industrial-sector consumer price index. Terms for the payment guarantee are
still under negotiation.

Reduction in exploration commitments
In Mozambique
, two exploration wells were drilled during the period on the Rovuma onshore
permit. The Tembo-1 well issued a Notice of Discovery in December 2014 but
was plugged since the operator did not plan to undertake additional appraisal
work immediately. Drilling on the Kifaru-1 well that began in December 2014
stopped in March 2015 after encountering all targeted formations (Miocene,
Oligocene and Eocene) without revealing any hydrocarbons. As part of a
programme to reduce its exploration activities, operator Anadarko plans to
withdraw from this permit. The Company is considering what action to take in
light of this information and the results recently obtained on this permit.

In Colombia
, Pacific Rubiales Energy had contracted in 2011 a carry obligation of $120
million in exploration costs after taking interests in the Muisca, SSJN-9 and
CPO-17 permits. Given the investment made at end-2014, the partner met its
commitment and this obligation was fulfilled. M&P Colombia, an operator in
which the Company has a 50% stake, finished drilling the Balsa-1 well on the
Muisca permit without proving oil. Three stratigraphic wells have been
drilled on the CPO-17 permit (in which M&P Colombia has a 50% working
interest), operated by Hocol. The results are currently being interpreted
against prior discoveries in order to define an appraisal programme. On 23
July 2014, at the "Ronda ANH 2014" (a bidding process in Colombia),
Maurel&Prom was awarded the SN-11 exploration permit. Negotiations are under
way to find a partner to finance the exploration work.

In Peru
, drilling of the Fortuna-1 well was abandoned. The Group has no plans to
continue this project once it enters the third exploration period. Within the
framework of the agreement signed in December 2011 and which came into effect
on 1 January 2012, Pacific Rubiales Energy (PRE) provided financing for the
works in the amount of US$75 million.

In Sawn Lake, Alberta
, the pilot test of the SAGD (Steam Assisted Gravity Drainage) production
process continued. The test was performed on two wells to appraise the
technical and commercial feasibility of this project, which aims to produce
bitumen by steam injection. Production began in September 2014 and will
continue until spring 2015 so that enough data can be collected to appraise
the field's potential.

In Quebec,
on Anticosti Island, the stratigraphic core holes campaign was a technical and
operational success. The Macasty target was met in each of the five drilling
locations and the results of the core analysis met or exceeded the partners'
expectations. The drilling programme, which has so far consisted of 18
stratigraphic wells, was suspended during the winter. It is expected ...

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