Afentra acquires stake in two blocks offshore Angola
Afentra acquires stake in two blocks offshore Angola. Afentra expects to sell its first cargo of crude oil in the third quarter of this year.
British oil and gas company Afentra has concluded the acquisition of a 4% stake in two blocks offshore Angola from Croatia’s INA-Industrija Nafte.
The acquisition in Block 3/05 and Block 3/05A marks Afentra’s foray into the Angola oil and gas space.
In April, Block 3/05’s gross output averaged 19,000 barrels of oil per day.
Afentra noted that its working interest in Block 3/05A would increase from 4% to 5.33%, subject to final approval of the allocation of the China Sonangol International interest to the remaining joint venture partners.
The deal, which was first announced in July 2022, received the nod from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023.
Afentra CEO Paul McDade said: “The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.
“It is also highly encouraging that the terms for the Block 3/05 licence extension award have been agreed; this represents a major step towards completion of the Sonangol transaction within our previously guided timeline.”
The deal, according to the British company, results in a net upfront consideration of $17m, which is mitigated by the company inheriting crude oil stock with a value of around $16.6m at $80 per barrel.
Additionally, the company has set aside $10m as a “escrow deposit at completion” that will be paid to INA following the formal completion of the Block 3/05 licence extension.
Afentra also noted that it expects to sell its first cargo of crude oil in the third quarter of this year.
Afentra completes INA deal, eyes on Sonangol next
Afentra has completed its purchase of INA’s stakes offshore Angola, while the deal with Sonangol is “on track” to complete by June 30.
Afentra bought a 4% stake in Block 3/05 and a 4% stake in Block 3/05A from INA. The agreed upfront payment is $17 million.
However, with an effective date of September 30, 2021, the company will also take ownership of $16.6mn worth of crude oil.
Afentra CEO Paul McDade welcomed the completion of the acquisition. “The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A,” he said.
Partners in Block 3/05 have also agreed terms with the Angolan regulator on extending the licence, from July 2025 to December 2040.
Afentra noted the fiscal terms had improved and, as a result, the economics of the permit improved. Agencia Nacional de Petroleo, Gas e Biocombustiveis (ANPG) will now seek approval from the government for the extension. Government should approve the move in June.
The licence extension was a condition for Afentra’s deal with Sonangol. The company agreed in April 2022 to pay $80mn for a 20% stake in Block 3/05. At the time, Afentra said it expected the deal to complete in the third quarter of 2022.
McDade said the agreement on the licence extension was “highly encouraging”. The progress “represents a major step towards completion of the Sonangol transaction within our previously guided timeline. We now look forward to working with the partnership to enhance production and reserves to a level that reflects the potential of this very material asset.”
Afentra has put $10mn in an escrow account. It will pay this to INA after the Block 3/05 extension is formally completed. The company will fund its INA purchase via a reserve-based lending (RBL) facility and cash.
Current production from Block 3/05 is 19,000 barrels per day gross, 760 bpd net. The company noted that this was up from 17,026 bpd in the first quarter as a result of works on power generation.
It also noted the start of long-term testing on the Gazela field, adding around 1,100 bpd, in Block 3/05A. There are also development plans under way on the Punja field, in the same block.
Afentra will lift its first cargo from the asset in the third quarter.
With delays out of the way, UK oil & gas firm enters Angola
UK-headquartered and AIM-listed company Afentra plc has completed the acquisition of interests in two blocks offshore Angola from Croatia’s INA-Industrija Nafte. This marks the UK player’s entry into Angola.
Following a sale and purchase agreement (SPA) from July 2022, Afentra announced the receipt of approval from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023 for the acquisition of a 4 per cent interest in Block 3/05 and a 4 per cent interest in Block 3/05A offshore Angola from INA-Industrija Nafte. Due to documentation delays, the process took longer than anticipated, however, the UK player announced the completion of the acquisition on Wednesday, 10 May 2023.
As a result, the company believes to be “well positioned” to build a material production business in Angola and contribute to “a responsible energy transition for the country.” According to Afentra, the transaction effective date of 30 September 2021 results in a net upfront consideration at the completion of $17 million, which is offset by the firm inheriting crude oil stock with an approximate value of $16.6 million at $80/bbl (207,868 bbls).
Moreover, the company also set aside $10 million into an escrow deposit at completion, which will be paid to INA after the Block 3/05 licence extension is formally completed. The net upfront consideration and escrow deposit will be funded by $18.9 million from the agreed reserve based lending (RBL) and working capital facilities and $8.1 million from cash resources.
Furthermore, the upfront consideration of $17 million comprises a $12 million initial consideration, $4.8 million in working capital and interest and $2 million in payments of crystallised contingent consideration, adjusted downwards by $1.8 million due to positive net asset cashflows. The UK player confirmed that Mauritius Commercial Bank (MCB) had entered both the RBL and working capital facilities as the lender to the company. As Trafigura retains an interest in the RBL facility, it will continue as an offtake provider for the Block 3/05 crude..
Afentra expects to sell its first cargo of crude oil in 3Q 2023, monetising the inherited crude oil stock and subsequent production. While Block 3/05 current gross production in April averaged approximately 19,000 bbl/d (net 760 bbl/d), the production in 1Q 2023 averaged 17,206 bbl/d as a result of downtime experienced through planned restoration works on power generation and the distribution network.
After ERCE completed its annual update of the Competent Persons Report (CPR) on the Block 3/05 assets with an effective date of 1 January 2023, the updated 2P gross reserves are 108 mmbbls (net 4.3 mmbbls) and the updated 2C gross resources are 43 mmbbls (net 1.7 mmbbls). In addition, long-term testing started in Block 3/05A, at the Gazela field, of an additional circa 1,100 bbl/d, enabling the framing of potential development options.
Paul McDade, Afentra’s CEO, commented: “We are very pleased to complete the INA acquisition and we would like to thank all involved, especially our shareholders, for their continued patience and support. The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.”
Block 3/05, located in the Lower Congo Basin, consists of eight mature producing fields discovered by Elf Petroleum – now part of TotalEnergies – in the early 1980s. This block has a diverse portfolio of over 100 wells. Currently, it produces from around 40 production wells with nine active water injectors. The facilities include 17 wellhead and support platforms and four processing platforms, with oil exported via the FSO Palanca.
What’s happening with the Sonangol acquisition?
Based on the SPA signed on 28 April 2022 between Afentra’s wholly-owned subsidiary and Sonangol regarding the purchase of non-operating interests in Block 3/05 (20 per cent) and Block 23 (40 per cent) offshore Angola, an important condition precedent for the Sonangol acquisition is the approval of the extension of the Block 3/05 production sharing agreement (PSA) until at least 31 December 2040.
In its update on the progress of this acquisition, Afentra highlighted that the Block 3/05 JV partners and ANPG, the Angolan oil and gas regulator, had agreed on the terms of the Block 3/05 licence extension, extending the production sharing agreement from 1 July 2025 to 31 December 2040 with improved fiscal terms that strengthen the economics of the permit.
In light of this, ANPG will now begin the process of obtaining the requisite governmental approvals for the licence extension. Afentra claims that the agreement between ANPG and the JV partners on the terms for the licence extension, allows Sonangol to start the process of obtaining the requisite government approvals for the Sonangol transaction which remains on track to be completed by 30 June 2023.
“It is also highly encouraging that the terms for the Block 3/05 licence extension award have been agreed; this represents a major step towards completion of the Sonangol transaction within our previously guided timeline. We now look forward to working with the partnership to enhance production and reserves to a level that reflects the potential of this very material asset,” added McDade.
TAG Oil achieves first oil production in the Badr oil field, Egypt
TAG Oil has announced the successful re-entry of the vertical well, BED 1-7, at the Badr Oil Field (‘BED-1’) in the Western Desert, Egypt. The Company perforated the Abu Roash ‘F’ formation (‘ARF Formation’) and conducted a Diagnostic Fracture Injectivity Test (DFIT). The reservoir was further fracture stimulated with a large 110 tons sand treatment and pump schedule with positive response confirming reservoir models and projected performance.
On flowback, the well unloaded to surface under natural flow and cleaned up approximately 40% of the injected fracture fluid with significant presence of 230 API oil. Net cumulative oil produced during the short flowback was in excess of 500 barrels, which was connected to a flow-line to the BED-1 field’s production facilities and onward into a sales pipeline.
The well was shut-in to remove the frac string, install 3.5” production tubing string and down-hole Electric Submersible Pump (ESP) to achieve steady production at stabilized oil rates. The well is expected to be on production within the next few days and the Company expects to announce 30-day rates from the well in mid June.
Data collected from the well along with geomechanical and 3D seismic review has enhanced our horizontal well design. Plans are underway to secure a drilling rig to drill the first horizontal well designed with a multi-stage fracture stimulation. All necessary permits have been secured and site construction is underway. The well is expected to spud next month.
Toby Pierce, CEO of TAG Oil, commented: ‘This activity is the first step to establish oil production from the ARF Formation, an oil rich source rock that covers a significant portion of the 107 Sq. Km. BED-1 concession. Production results confirm the economic feasibility of this important resource play in the Western Desert of Egypt.’
Click here for Badr-1 (“BED-1”) concession area technical info
MIDAS SHARE TIPS: Focus on cleaner fossil fuel in Africa with Afentra
Fossil fuel firms are besieged by critics but perhaps the loudest opposition is reserved for Africa-focused businesses.
Eco-warriors argue that oil and gas exploration and production is exploitation by another name and that any company worth its salt should stop what it is doing – and fast. Paul McDade takes a different view. Formerly chief executive of FTSE 100 Tullow Oil, McDade has spent 35 years in the oil and gas industry, including almost two decades in Africa.
He understands the continent and the role that energy plays in helping Africans improve their lot. That is why he established Afentra – a short form for ‘African energy transition’.
McDade’s mission is to buy oil and gas assets that are already in production, make them as safe and environmentally efficient as possible and employ local people to their benefit and the company’s.
Afentra shares are 25p and should increase substantially, as McDade puts his strategy into effect. shares are 25p and should increase substantially, as McDade puts his strategy into effect.
Early signs are encouraging. Afentra was formed through a quasi-takeover of Sterling Energy, a small energy firm in need of a change of direction. In the spring of 2021, McDade was parachuted in to deliver that change.
Within months, he and his team had found a deal – 20 per cent of a world-leading oil field just off the coast of Angola.
The state-owned energy group, Sonangol, wanted to reduce its 50 per cent stake in the field, known as Block 3/05 – Afentra was keen to buy. Like almost everything in Africa, the transaction has taken longer than expected. Finally signed off last April, the deal has been delayed ever since.
In the meantime, McDade acquired another 4 per cent of the Block from INA, a state-backed Croatian energy firm. Now, finally, the end is in sight.
The INA sale should complete within days, Sonangol is expected to follow suit in June and Afentra will then start to make money. Block 3/05 produces almost 20,000 barrels of oil a day so Afentra’s position will amount to around 5,000 barrels a day.
Under the terms of the Sonangol and INA deals, however, Afentra is entitled to oil accrued since a particular date in their negotiations – counter-intuitively, September 2021 for INA and April 2022 for Sonangol.
The agreements mean that McDade will end up paying out considerably less in upfront cash than he would have done had the deals completed straightaway. And he has had ample time to plan how to boost production from the Block.
Up to 30,000 barrels a day is in Afentra’s sights, through modern extraction techniques and more proactive management.
There are also clear opportunities to make the Block environmentally cleaner, including a reduction in gas flaring, which sends greenhouse gases shooting into the atmosphere.
McDade and his crew are looking for other transactions too, several are in the pipeline and the hope is to achieve daily production running into tens of thousands of barrels in years to come. Crucially though, Afentra is focused on mature assets, fields that are already operating but could do better and become cleaner.
Brokers expect sales of around $60 million (£48 million) this year, rising to almost $100 million in 2024. Profits of some $22 million are forecast for 2023, with further growth pencilled in for next year.
Midas verdict: Fossil fuels pollute the planet so consumers and businesses alike need to shift towards renewable power. But the transition will take time and needs to be handled with sensitivity. McDade is determined to do just that at Afentra, delivering benefits for shareholders, customers and African communities. At 25p, the shares are a buy.
iMbokodo’s transformative vision for oil and gas in South Africa
Meridian Capital Limited, invests in companies and people with a successful track record from various sectors. As a part of the investment portfolio, the Company seeks to invest in early-stage oil and gas exploration companies with quality management teams and assets. One such investment is in iMbokodo Exploration and Production. A South African company with a difference – a majority black female management team led by the newly appointed Chair, Sonja De Bruyn.
Over the last four years, much has happened behind the scenes at iMbokodo, the majority women-led and majority black-owned South African oil and gas group. iMbokodo, from the Zulu word meaning ‘solid rock’, is recognised for its concrete approach that aims to have a positive impact in South Africa and works to build trusted partnerships with reputable IOC’s that believe in sharing the value of oil and gas assets in South Africa and developing a sustainable model that also creates value for the local community.
The Company’s geographic focus has largely aligned with the progress and development of the broader sub-Saharan Africa oil and gas sector, which has been significantly reshaped over the last few years by several major discoveries offshore of both South Africa and Namibia.
It also coincides with the deepening energy crisis in South Africa, a crisis that will require a range of solutions to overcome, including a Just Energy Transition which is already underway. Right now, it has never felt more important to be part of the solution to South Africa’s energy crisis.
Since the Company’s inception in 2019, is has gained an interest in three highly prospective onshore assets in eastern South Africa. The economic potential of these properties is clear, neighboured by Rhino Resources, Kinetiko Energy and Renergen, whose assets also contains the highly sought-after commodity of helium.
iMbokodo has not only successfully grown and consolidated its position as a burgeoning African oil and gas player, but has also spearheaded female empowerment in one of the least gender-diverse sectors globally.
Sonja de Bruyn, Chairperson of iMbokodo, believes that she has best team in place to deliver meaningful and transformative value-creation in the sector. While it was founded as a female empowerment company, the Company has taken steps to reinforce its commitment to gender diversity with her recent appointment as Chairperson, alongside a team of experienced black women who are also currently occupying the lead geologist and chief financial officer roles.
Sonja’s experience of over 25 years in investment and finance, as executive director at WDB Investment Holdings leading several of their acquisitions, as a co-founder of women-owned and managed investment firm Identity Partners, and also at Ethos Private Equity, where she was responsible for diversity and transformation; has shown her how important building a diverse team is for effecting outcomes. This is at the heart of the Company’s mission and why they believe in what is being built at iMbokodo.
At iMbokodo there is a responsibility to the people and communities where oil and gas operations take place. The Company aims to ensure all their participation has a growth and development focus beneficial to local communities with 10% of iMbokodo’s future share ownership structure allocated to the historically disadvantaged communities, to enable them to achieve their full potential in participation in the oil and gas arena.
The whole team’s expertise will enable iMbokodo to not only secure the appropriate financing required but also to unlock the most prospective investment opportunities. The Company recently secured a funding facility of US$12 million from Meridian Capital Limited, a significant global investor in various offshore and onshore oil and gas opportunities, highlighting the confidence that exists in the business, whilst simultaneously providing the firm capital required to enter a highly prospective asset on the West Coast of South Africa.
iMbokodo’s vision is to become the leading upstream company offering services to the oil and gas sector, impacting not just the businesses they work with, but with the intention to create meaningful and transformative partnerships with the local communities and becoming the BEE partner of choice for the South African / African oil and gas industry.
Level 37, 41 Heung Yip Road,
Wong Chuk Hang,
Hong Kong
Tel: +852 2239 5300
https://meridiancapitallimited.com/
Meridian Capital Limited is an international investment firm headquartered in Hong Kong with a diversified investment portfolio spanning consumer goods, real estate, hospitality and natural resources. Meridian Capital Limited seeks out global investment opportunities with favourable long-term fundamentals. They operate in emerging and frontier markets, often in partnership with industry leaders and talented entrepreneurs. Meridian Capital Limited carefully select their investments to ensure that they have a broader social, developmental or environmental impact in their sector and operating environment.
Valet Diving Experience in Raja Ampat with Meridian Adventure Dive
From the start of your first diving course, you are usually heavily involved with packing, moving, and washing the diving equipment. While this is an essential and invaluable skill and safety requirement of becoming a competent and autonomous diver, there are times when you wish someone would take care of it all for you.
At Meridian Adventure Dive, you are treated to a valet experience when it comes to equipment, whether bringing your gear or using the freediving equipment available at the resort.
You need not worry about dragging your gear bags all over for those traveling with your own equipment. From the moment you arrive at reception, the team will meticulously log your equipment, tag and label it as needed, and ensure it is safely stored until you are set to dive.
Fear not for those who choose to use the state-of-the-art Aqualung equipment available at no additional cost; the selection and fitting process cannot be more straightforward. The team will make a note of all your required equipment and requests. From here, you can visit the on-site dive center at your leisure.
The professional dive team takes the time to introduce you to all the equipment available and find your perfect fitting equipment in a few minutes. In addition, they are always available to answer any questions you may have, even regarding your equipment.
As a guest, this is the only input the team requires from you. The equipment is labeled, moved to your assigned high-speed dive boat, set up, tested ready for your diving adventure.
These high-speed custom speed boats are designed with comfort and ease for the diver, with dedicated secured slots for your equipment and ample deck space to enjoy the thrilling ride to the dive site. You are provided with safe storage space for divers with specialised camera equipment for your precious gear.
The dive team will meet you at the restaurant daily before your dives and escort you to the dive boats in the private marina, where you will be shown your labeled spot on the boat and given a boat safety briefing. Before each departure, all guests are encouraged to run through their pre-dive equipment checks and ensure they have all the required equipment. The dive team also makes sure to pack spares of all dive equipment in various sizes and a host of spares and tools, so there is always a reason to take advantage of an incredible dive.
While on the trip, you will be treated to personal attention by the dive team, including interesting facts about the area or even just a chat about the incredible marine life you spotted on the dive.
Snacks and drinks are also provided between dives while you chill on white beaches surrounded by crystal-clear waters, all while the dive team prepares the boat for your next dive. All cylinders are changed for you, equipment checked and neatly stowed back in your dedicated spot. Again all you need to do is a final gear run-over.
At the end of your diving day, you can step off the boat and enjoy the luxuries the resort offers to the guests. The cylinders are filled, and all equipment is washed and set up for the next day. While the team also goes the extra mile washing the boats, ensuring that guests always return to a clean and inviting boat.
The beautiful mangrove restaurant terrace has a dedicated camera station for photo enthusiasts, from charging and storage space to charging points. So you can review and share your footage while sipping on a drink or a snack.
Finally, when the sad last day of diving arrives, the team removes, washes, and checks all of your equipment for the last time. As far as possible, equipment will be dried as much as time allows before departure. The team will even neatly repack your equipment bag, ready for departure.
All equipment is returned to the reception team, where final checks are made to ensure everything is accounted for.
This is just an ordinary day for the team at Meridian Adventure Dive, where the guests’ comfort and experience are the top priority—the perfect diving vacation. So you get to dive, and the rest is taken care of.
Situated in Raja Ampat, Indonesia, Meridian Adventure Dive is a PADI 5 Star Resort and winner of the PADI Green Star award. Scuba divers enjoy our professional services that have become synonymous with both the PADI and Meridian Adventure names.
Raja Ampat, Indonesia is a stunning limestone Archipelago
When visiting Raja Ampat, one of the most awe-inspiring moments is when you first encounter the limestone cliffs along the coastline. These towering structures stretch high into the air and deep into the depths of the water forming the base of the reef systems the area is so well known for.
The history of Raja Ampat goes back millions of years, and many believe that the earliest archipelagos were formed as far back as 420 million years ago and, with time, grew into the incredible structures you find all over the area now.
The four main regions of Raja Ampat, Waigeo, Misool, Salawati, and Bantanta form the geopark area—an initiative to preserve this natural beauty for the local community and tourists. The most significant structures are on Waigeo, where the mountains reach 900m above sea level.
Situated in Raja Ampat, Indonesia, Meridian Adventure Dive is a PADI 5 Star Resort and winner of the PADI Green Star award. Scuba divers enjoy our professional services that have become synonymous with both the PADI and Meridian Adventure names.
These limestone formations are rich with foliage; green trees and shrubs grow on the small pinnacles and high mountains that rise out of the ocean and provide a natural habitat for many wildlife, from the birds of paradise to the world-famous coconut crabs.
These islands and pinnacles are spread all over the region. As you travel around the area by boat, you often pass through channels and passages where the limestone formations tower over you on both sides. The Passage is the most famous natural saltwater river that flows between landmasses in the Western parts of Waigeo.
These limestone formations also offer great viewing points for visitors to enjoy Piaynemo and Wayag, the most famous, and allow guests to enjoy incredible vistas of natural lagoons, valleys, and passages after a short hike on the wooden walkways to the top. The perfect spot to take that Raja Ampat ‘selfie.’ While these are the most famous, there are many less-known lookouts to explore, such as Pencil rock in the Waigeo region. Book a fast boat tour to explore all these on a non-diving day, or incorporate it into your surface interval.
While the limestone formations are awe-inspiring from the underwater surface, they become even more spectacular. This is because the structures stretch far below the surface and form the perfect base for hard and soft coral growth that Raja Ampat is famous for. These structures have been eroded over the years due to the tides and currents and now offer some of the best naturally formed structures for divers to explore.
Raja Ampat has everything from natural caverns and swim-throughs to colourful reef slopes and walls. Some of our personal favourites include Red Rock in the northern part of Waigeo. One of the most colourful coral formations is a large island with towering limestone formations, small enclaves with white sandy beaches and palm trees, and a 30m wall on the island’s south side.
When starting your dive, you will be in awe of the massive structure above the water and gently drift along the wall until, gradually, the wall slopes up, and you end your dive at the foot of a white sandy beach. A memory you will never forget.
Other incredible dives you need to experience are the limestone structures like Mike’s Point, Friwen Wall, and the Passage. Raja Ampat is a truly unique destination with a long history and has remained mostly untouched. The Last Paradise. This is the closest we can see the earth as it should be in its natural state.
Meridian Adventure Dive Offer a Unique Paddle Boarding Experience
With clear waters, white beaches, and lush forests, the Raja Ampat islands are the perfect tropical retreat for all. Exploring the incredible underwater world, the dense forests, and magical beaches might be the most common and obvious ways to experience the area and well worth your time. However, there are many other ways to explore and appreciate the last paradise.
The clear, calm waters of the area provide the perfect conditions to participate in several water sports, including paddleboarding. While the sport may seem intimidating to many, it is easy to learn and a safe water sport, especially in these fantastic conditions. It is even possible for those who are still hesitant to take part whilst sitting or have a guide to double up with you for the experience.
Raja Ampat is well known for the reefs and incredible marine life but what many do not know is that most of these reefs are shallow and readily assessable to all. Because of this, it is possible to enjoy the wonders of the underwater world from the surface. With a knowledgeable guide leading the way, you can have the best experiences while on a paddleboard. Meridian Adventure Dive has perfected paddleboarding safaris and offers top-of-the-range equipment, including inflatable paddle boards for guests who wish to participate.
Almost every reef and island offers the opportunity to explore on a paddleboard. It is still a great holiday activity for the entire family, even when not spotting marine life. What sets Meridian Adventure apart is the unique locations and routes that they have discovered for their guests.
Imagine a late afternoon traveling on a custom-built dive boat through the most breath-taking landscapes to a hidden bay where your paddleboards are waiting for you to start your journey after an experienced guide has shown you the ropes of using a paddleboard. You set out on an incredible route twisting through towering limestone formations and channels you didn’t even notice before. Over shallow reefs with clear water, into naturally formed caves and overhangs, the guides are there to assist you and give you information on the area.
You can hear and spot large groups of jolly birds in the trees, and below you, the coral is rich with fish coming out of their daytime hiding spots. As you make your way around the last bend, you will be amazed by the incredible sunset that appears on the horizon. The evening offers shades of orange, yellow, and red you have never experienced before. At this point, you are encouraged to take a few minutes of silence to take in all around you as the sun sets before being transferred to your waiting dive boat, where you can enjoy refreshments on your journey back. This experience is one example of the team’s many paddleboarding experiences.
From sunset paddleboarding through the limestone formations, sunrise paddleboarding around a tropical island seeing the local fruit bats returning from their night-time adventure, or even paddling on a winding saltwater river surrounded by lush mangrove forests to find natural waterfalls and pools waiting for you at the end. These are but a few of the possibilities available to you. For those even more adventurous, why not rent a paddleboard for the day and explore on your own. Stand Up Paddleboarding (SUP) is fast becoming a popular water sport and is a great way to explore the untouched and get closer to nature. The perfect way to explore Raja Ampat in a new and exciting way
Situated in Raja Ampat, Indonesia, Meridian Adventure Dive is a PADI 5 Star Resort and winner of the PADI Green Star award. Scuba divers enjoy our professional services that have become synonymous with both the PADI and Meridian Adventure names.
iMbokodo Exploration shuffles leadership, eyes expansion
Sean Lunn is heading out from his role as iMbokodo Exploration and Production chairman, handing the reins over to financial hotshot Sonja De Bruyn as the company prepares to sign up new acreage.
Lunn remains involved with iMbokodo, De Bruyn said, as the company works on two onshore projects and eyes further expansion.
Lunn will stay on the board and is a key shareholder and participant. “The restructuring reinforces our commitment to wanting women to go into spaces that are important to the economy,” De Bruyn said. The new chair comes from 25 years of work, primarily in the financial services sector.
“Most of my career has been about gender equity and black empowerment in South Africa … that transformation is very important and particularly in sectors where there are large investments,” she continued.
Funding
Access to financing will be essential for iMbokodo to grow. The company secured funding from Meridian Capital in March 2021.
“It is a challenge attracting investments to South Africa, but it’s about speaking to the right audience of investors and demonstrating the underlying assets and their quality,” De Bruyn said. The company is in talks with development finance institutions (DFIs) for support.
Qualifying as a black economic empowerment (BEE) company, iMbokodo will further benefit from the extent of its female management team.
The founding idea behind iMbokodo was about creating a woman-led company. Other top executives at the company include CFO Daphne Mentor and lead geologist Sanelisiwe Mhlambi.
These DFIs have an “opportunity to demonstrate that they back gender participation and parity”, De Bruyn said. “It will be up to us to demonstrate an ability to bring projects online and to find the right capital providers. Traditional private equity providers have a limited timeframe,” but there are other options.
“There’s a lot of excitement around some of the properties in South Africa and Namibia that should mean we can attract investors from all over the world,” she continued.
Exploration
iMbokodo has signed up two technical co-operation permits (TCPs), one in Free State, the other in Mpumalanga. The licence in Free State is close to Renergen assets, which recently started producing.
The licences are still in the early stages, De Bruyn said, suggesting the company was also in talks for another area. There is one new opportunity “in particular which is taking up a lot of our time”, De Bruyn said. “The offshore asset we are looking at is on trend with Venus and Graff, part of that basin.”
Lunn, the outgoing chairman, served as Impact Oil and Gas’ country manager, and is also a shareholder and director in Sezigyn and Ricocure.
Should the company be successful at its two existing TCPs, it could move products to market either via Renergen infrastructure or a pipeline running to Secunda.
“We still require partners,” De Bruyn explained, to bring in technical and financial capability. iMbokodo sees its part in working with local communities for approval.
“It’s exciting for us to bring onshore assets to market,” she said. “We can be part of the solution around gas-to-power. South Africa is in the middle of a power crisis and we must be mindful of the just energy transition – and we can play a role in that,” she said.
Policy challenges
As recent offshore seismic projects have demonstrated, it can be challenging to carry out projects in South Africa, despite the need for more power.
“The challenges are not intractable. There’s concerted focus now from the new minister of electricity, the new CEO of Eskom, the Department of Public Enterprises, that should complete the suite of government view. There’s a willingness and an acceptance, ideologically, that it can’t be solved without private sector participation,” the chair said.
New legislation in the upstream is coming. A number of public hearings have been held recently on the Upstream Petroleum Resources Development Bill.
De Bruyn said iMbokodo had been set up with an eye on the draft bill and that the company was “compliant with government expectations”.
One area where iMbokodo has an advantage is in its plans to work with local communities. This has to go beyond simply reserving a 10% stake, De Bruyn said, “it’s about that extra effort”.
There is scope to link up local SMEs with funding sources, so these communities can become involved in the supply chain. The iMbokodo chair cited progress in the mining sector to bring in local communities and ensure benefit sharing, and from renewable energy producers.
Located in the heart of the jungle is the stunning Blue River.
Afentra acquires stake in two blocks offshore Angola. Afentra expects to sell its first cargo of crude oil in the third quarter of this year.
British oil and gas company Afentra has concluded the acquisition of a 4% stake in two blocks offshore Angola from Croatia’s INA-Industrija Nafte.
The acquisition in Block 3/05 and Block 3/05A marks Afentra’s foray into the Angola oil and gas space.
In April, Block 3/05’s gross output averaged 19,000 barrels of oil per day.
Afentra noted that its working interest in Block 3/05A would increase from 4% to 5.33%, subject to final approval of the allocation of the China Sonangol International interest to the remaining joint venture partners.
The deal, which was first announced in July 2022, received the nod from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023.
Afentra CEO Paul McDade said: “The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.
“It is also highly encouraging that the terms for the Block 3/05 licence extension award have been agreed; this represents a major step towards completion of the Sonangol transaction within our previously guided timeline.”
The deal, according to the British company, results in a net upfront consideration of $17m, which is mitigated by the company inheriting crude oil stock with a value of around $16.6m at $80 per barrel.
Additionally, the company has set aside $10m as a “escrow deposit at completion” that will be paid to INA following the formal completion of the Block 3/05 licence extension.
Afentra also noted that it expects to sell its first cargo of crude oil in the third quarter of this year.
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Afentra COO Ian Cloke to Discuss Sustainable Hydrocarbon Development at AOG 2022
Afentra acquires stake in two blocks offshore Angola. Afentra expects to sell its first cargo of crude oil in the third quarter of this year.
British oil and gas company Afentra has concluded the acquisition of a 4% stake in two blocks offshore Angola from Croatia’s INA-Industrija Nafte.
The acquisition in Block 3/05 and Block 3/05A marks Afentra’s foray into the Angola oil and gas space.
In April, Block 3/05’s gross output averaged 19,000 barrels of oil per day.
Afentra noted that its working interest in Block 3/05A would increase from 4% to 5.33%, subject to final approval of the allocation of the China Sonangol International interest to the remaining joint venture partners.
The deal, which was first announced in July 2022, received the nod from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023.
Afentra CEO Paul McDade said: “The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.
“It is also highly encouraging that the terms for the Block 3/05 licence extension award have been agreed; this represents a major step towards completion of the Sonangol transaction within our previously guided timeline.”
The deal, according to the British company, results in a net upfront consideration of $17m, which is mitigated by the company inheriting crude oil stock with a value of around $16.6m at $80 per barrel.
Additionally, the company has set aside $10m as a “escrow deposit at completion” that will be paid to INA following the formal completion of the Block 3/05 licence extension.
Afentra also noted that it expects to sell its first cargo of crude oil in the third quarter of this year.
PetroTal Announcement | Q3 2022 Operations Update
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) issued the following operational and corporate updates for Q3 2022 Production.
Q3 2022 Production
PetroTal’s Q3 oil production was approximately 1.12 million barrels, representing 12,229 barrels of oil per day (“bopd”), which was the Company’s second best producing quarter to date. The current technical production capacity of the Bretana oilfield is approximately 18,000 bopd, prior to the upcoming completion of well 13H. The third quarter is a seasonally dry quarter, but this year the river water levels were unusually low, so PetroTal took the precaution of loading barges to a reduced capacity to ensure their safe operation while traveling. As a result, production was constrained during this period to match reduced export capacity, which has been impacted from the continued closure of the Northern Peruvian Pipeline (“ONP”). As the dry period passes and water levels rise, the Company expects to return to increased levels of barge capacity.
Well 13H Update
On October 4, 2022, well 13H reached its total depth and is now being completed. At an unconstrained level, the Company expects to again have production capacity of over 20,000 bopd that can be quickly activated once river levels normalize, and additional barges are made available.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“We continue to work with our trader to increase their overall available contracted barging fleet size to alleviate oil export constraints, which have been compounded by the unavailability of the ONP since early 2022. We are adjusting our 2022 guidance to reflect a conservative sales scenario, which we hope to exceed should the ONP become a viable sales option in Q4 2022. Under this conservative scenario, cash flow is still very strong allowing the Company to deliver on its promised shareholder return program in 2023. Additionally, we are looking forward to finalizing the ongoing successful working table discussions related to the social trust.”
ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100% working interest in Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the largest crude oil producer in Peru. The Company’s management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For the full release, visit: http://www.petrotal-corp.com/
TAG Oil signs petroleum services agreement to commence development operations at Abu Roash
Press Release
TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to announce that it has now formally entered into the previously announced petroleum services agreement (the “PSA”) with Badr Petroleum Company (“BPCO”) to commence development operations at the unconventional Abu Roash “F” reservoir in the Badr Oil Field (“BED-1”), a 107 km2 (26,000 acres) concession located in the Western Desert of Egypt.
The official PSA signing took place at the Egyptian General Petroleum Corporation (“EGPC”) offices in Cairo, Egypt, between Eng. Ibrahim Massoud, Chairman of BPCO, and Abby Badwi, Executive Chairman of TAG Oil, and present for the signing was Eng. Mohamed Baydoon, Vice President Production of EGPC.
Abdel Fattah (“Abby”) Badwi, Executive Chairman of TAG Oil said, “With the recently announced upsized C$22 million underwritten public offering and current working capital, the Company is well positioned to initiate development operations at the BED-1 Field and execute a significant capital program starting this year and continuing into 2023 to unlock the potential of this significant oil resource.”
Further details of the project are included in a presentation available on the Company’s website.
About TAG Oil Ltd.
TAG Oil is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For more infomation, visit TAG Oil’s website: http://www.tagoil.com/
Support Africa in determining its own energy future
AIEN’s International Energy Summit
Africa should be supported in determining its own energy future, delegates at the AIEN’s International Energy Summit in London heard
A lively panel session moderated by Shakwa Nyambe, founder and managing partner of SNC Incorporated, discussed Africa’s energy future, the impact from events in Europe, and the international investment outlook. Participants encouraged a balanced and pragmatic approach to the energy transition in Africa, where 600mn people lack access to electricity and energy poverty is a critical issue.
See the full article here.
FEATURED IN
Afentra announces its half year results
Press Release
Afentra plc (‘Afentra’ or the ‘Company’), the upstream oil and gas company focused on acquiring mature production and development assets in Africa, announces its half year results for the six months ended 30 June 2022 (the ‘Period’).
Financial Summary
· Cash resources as at 30 June 2022 of $27.1 million (30 June 2021 of $40.8 million)
· Additional restricted funds of $8.0 million1
· Adjusted EBITDAX loss of $1.2 million (1H 2021: loss $1.5 million)
· Loss after tax of $2.9 million (1H 2021: loss $2.4 million)
· The Group remains debt free and fully carried for Odewayne operations
Angolan Acquisitions
The Company announced two strategically consistent and complementary transactions in Angola, signing sale and purchase agreements (‘SPAs’) with completion expected in Q4 2022 (together the ‘Acquisitions’):
· Sonangol Acquisition: acquisition of interests in Block 3/05 (20%) and Block 23 (40%) offshore Angola for a firm consideration of $80.5 million and contingent payments of up to $50 million;
· INA Acquisition: acquisition of interests in Block 3/05 (4%) and Block 3/05A (5.33%)2 offshore Angola for a firm consideration of $12 million and contingent payments of up to $21 million;3
· Financing Agreements: Sonangol and INA Acquisitions will be financed through cash on the balance sheet and agreed RBL and revolving working capital facilities with Trafigura:
o 5-year RBL facility with up to $75 million available to finance the Acquisitions (8% margin over 3-month secured overnight financing rate (the ‘SOFR’)) (the ‘Acquisition Facility’);
o Revolving working capital facility for up to $30 million to finance asset funding requirements between crude offtakes (4.75% over 1-month SOFR) (the ‘Working Capital Facility’).
· Offtake Agreement: The Company has also entered into an offtake agreement with Trafigura for Afentra’s crude oil entitlement lifted from the Acquisitions.4
AIM Re-admission Process
· AIM Admission Document was published on 10 August 2022. Suspension of the trading in the Company’s shares was lifted and trading in the Company’s ordinary shares recommenced
· General Meeting: Resolution to approve the Sonangol Acquisition was passed at the General Meeting held on 30 August 2022
· Completion of the Acquisitions and re-admission of the enlarged group to trading on AIM is anticipated in Q4 2022
Operations Summary
Operations pursuant to the ongoing Acquisitions
· Block 3/05: Congo basin, Angola (24% interest)5 – net 2P reserves of 27.7 mmbo, net 1H 2022 production of c. 4,700 bbl/day, net 2C resources of 10 mmbo with significant potential for future upgrades
· Block 3/05A: Congo basin, Angola (5.33% interest)2,5 – three appraised discoveries in adjacent licence to Block 3/05, providing tie-back opportunities using existing infrastructure; net 2C resource of 1.8 mmbo
· Block 23: Kwanza basin, Angola (40% interest)5 – highly prospective deepwater exploration and appraisal opportunity that is largely under-explored containing a small pre-salt oil discovery
Existing operations
· Odewayne exploration block: offshore Somaliland (34% interest fully carried by operator, Genel Energy) – the team continues its technical assessment and outlook on block prospectivity in discussion with the operator
Paul McDade, Chief Executive Officer, Afentra plc commented: “The first half of 2022 marked a transformational period for the Company, including the foundational asset transaction with Sonangol enabling entry into Block 3/05 in Angola. Following Period end, Afentra announced an incremental transaction with INA gaining additional exposure to the high quality 3/05 block and the adjacent 3/05A block. Combined, these complementary acquisitions provide a strong growth platform, underpinned by robust cash flow and significant potential to deliver upside value. The financing and offtake agreements announced with Trafigura demonstrate our ability to efficiently fund our focussed buy and build strategy. In August, we were pleased to recommence trading in Afentra’s shares on AIM and, subsequently, shareholder approval of the Sonangol transaction. We take confidence that the completion of a smooth election process and the re-instatement of the government will allow the Company to re-engage with the Government to achieve completion of the transactions in Q4 2022. Meanwhile, the Company continues to remain highly active and disciplined in its assessment of the opportunity landscape in line with its stated growth strategy.”
For the full release, see here: IR Solutions, Q4 Europe
Food Union product brands voted as the most loved in Latvia and the Baltics
Press Release
The most beloved Baltic brands were awarded in the ceremony of the Baltic Brand Ranking on September 21. Food Union product brands have been highly recognized in Latvia and the Baltics, taking top spots in the ranking and earning awards in 23 categories in total. The dairy product brand Kārums remains an undisputed leader among most loved food industry brands in Latvian and across the Baltics.
Food Union brand Kārums earned the top praise on the Baltic scale ranking first among the most loved food products in the Baltic States. In the category of Most Loved Baltic Brands, Kārums climbed 3 positions to the respectable 16th place.
In the national competition, Food Union brands earned praise and won valuable awards in several categories. Kārums, the brand of curd snacks and other dairy treats, won the title of Most Loved Local Food Product. Among ice cream brands – Ekselence ranked 2nd, Pols 3rd and Tio 4th, while Karlsons took 5th place.
In the category of Most Loved Ice Creams in Latvia, 1st place was awarded to the gourmet ice cream brand Ekselence. The legendary, bold and eternally youthful Pols ranked 2nd and the best cocktail ice cream Tio came 3rd, while Karlsons, which marks the 30th anniversary this year, was ranked 4th.
In the category Most Loved Dairy Products in Latvia, 1st place went to Kārums and Dzintars was named 2nd best loved brand in this category. Valmiera products won 3rd place and Limbazu Piens 4th place. The popular fermented drink and yogurt brand Lakto took 7th place.
In Estonia, the ice cream brand Eriti Rammus took 2nd place in the category of Most Loved Producer in Estonia. Meanwhile, Kārums took 5th place in the category Most Loved Dairy Product in Estonia.
Products of Food Union Group dominated the category of Most Loved Ice Creams also in Estonia, with Eriti Rammus taking the top spot, children’s ice cream Väike Tom ranking 3rd and the legendary Premia ice cream taking the 4th position.
Most loved brands have been ranked for 18th time in Latvia and for 11th time in across the Baltics.
Find out more about Food Union here.
FAR Ltd announces its results for the half-year ended 30 June 2022
Press Release
FAR Ltd is pleased to announce it has published its finacial report for the half-year ended 30 June 2022.
For the report, please see here: Half-Yearly-Report-and-Accounts.pdf (irmau.com)
Afentra CEO’s, Paul McDade, career is a far cry from Glasgow roots – upstream
Iain Esau – upstream
Afentra chief executive talks success, relationships, being held hostage and the energy transition
Glasgow-born Paul McDade, the 58-year-old chief executive of Africa-focused Afentra, is clear what makes for a successful business – people of a like mind with complimentary skills.
“Surround yourself with a great team of people that you get along with, have fun doing what you do and, if you’re ambitious and have a clear view of where you want to get to, you’ll get there as long as you persevere.”
He also highlights the importance of “relationships, managing your reputation and leaving things in a good place – you never know when you might have to pick things up again.”
See the full article here.
See more about Afentra here.
FEATURED IN
111.5 million euros turnover for Food Union – Nach Wett
The dairy and ice cream production group “Food Union”, which includes the production plants JSC “Rīgas piena kombināts” and JSC “Valmieras piens” and the logistics company SIA “Premia”, ended 2021 with a 4% increase in consolidated turnover to 111.5 million euros.
Gross profit fell by 5% to EUR 25.5 million.
The increase in sales in 2021 is related to the increase in product selling prices, while the decline in profit is due to the rapid increase in the cost of key raw materials and energy resources, which were not fully reflected in the product selling prices.
See the full article here.
Find out more about Food Union here.
FEATURED IN
TAG Oil announces its Q1 2023 results
Press Release
TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its financial results for the interim period ending June 30, 2022. A copy of TAG Oil’s financial statements and management discussion and analysis for the interim period ending June 30, 2022 are available on SEDAR (www.sedar.com) and on the Company’s website (https://tagoil.com/investors/financial-reports/).
Highlights over the period include that the Company had C$13.1 million (March 31, 2022: C$13.3 million) in cash and cash equivalents and C$15.4 million (March 31, 2022: C$15.4 million) in working capital and has no debt. TAG Oil continues to manage its costs and allocate the necessary resources towards its business development efforts in Egypt and other areas in the Middle East and North Africa region.
TAG Oil is continuing to make significant progress on a few key strategic opportunities in Egypt, as previously announced. TAG Oil expects to have an update on the status of one or more of these transactions in due course.
About TAG Oil Ltd.
TAG Oil is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For more infomation, visit TAG Oil’s website: http://www.tagoil.com/
FAR Ltd takes 100% ownership in The Gambia Blocks A2 and A5
Press Release
FAR Ltd (“FAR” or the “Company”) is pleased to announce that its wholly owned subsidiary FAR Gambia Ltd has recently acquired an additional 50% interest in Blocks A2 and A5 offshore The Republic of The Gambia, giving FAR a 100% working interest. The interest was acquired from PC Gambia Ltd a subsidiary of Petroliam Nasional Berhad (“PETRONAS”).
Highlights
· FAR has acquired a further 50% interest in Gambia Blocks A2 and A5 giving the Company a 100% working interest
· Commitment to drill an exploration well during the next two-year contract term removed
· FAR has initiated a process to find partners to fund the forward exploration programme
· New laboratory analysis has positive implications for the Panthera Prospect directly up-dip of Bambo-1.
The next two-year license term for Blocks A2 and A5 is due to commence on 1 October 2022 and as part of the acquisition, FAR has negotiated with the Government of The Gambia to remove the obligation to drill an exploration well during this term. The removal of the commitment to drill an exploration well results in a significant reduction in expenditure and allows for a detailed geoscience review incorporating the results of the recent Samo-1 and Bambo-1 wells to ensure future exploration wells are located optimally.
The Company has opened a data room forsuitably qualified parties to consider participation in a Joint Venture to undertake the geoscience review and ultimately to drill additional exploration wells. FAR expects new partners to fund the costs of the work programme. Subject to the satisfaction of certain conditions, including Government approval, incoming participants in the Joint Venture may assume Operatorship.
The 100% interest in Blocks A2 and A5 and the revised investment obligation enhances FAR’s ability to seek farm-in partners to the project while controlling any potential corporate action and process.
Commenting on the update, FAR Chairman Patrick O’Connor said: “FAR’s acquisition of the remaining 50% of The Gambia assets and the positive discussions with the Government of The Gambia on the terms for the First Extension Exploration Period will provide FAR options to utilise its valuable exploration data to maximise value from the asset. These developments have minimal impact on FAR’s forward budget while significantly improving the chance of securing new investment.
FAR remains committed to generating real value for our shareholders, and we see this transaction as a part of that overarching strategy.”
For the full press release, see here: https://far.live.irmau.com/irm/pdf/190a9491-46ed-46a3-bedf-4696334b0b51/FAR-takes-100-ownership-in-The-Gambia-Blocks-A2-and-A5.pdf
PetroTal announces its Q2 2022 financial and operating results
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) is pleased to announce its financial and operating results for the three months ended June 30, 2022 (“Q2 2022”).
Selected financial and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements (“Financial Statements”), and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2022, which are available on SEDAR at www.sedar.com and on the Company’s website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars (“USD”) unless otherwise stated.
PetroTal delivered solid Q2 2022 financial and operational performance highlighted by record production rates, record cash flow, and a robust balance sheet profile with a substantial net cash position.
Q2 2022 Highlights
-
Achieved record quarterly production of 14,467 barrels of oil per day (“bopd”) and quarterly sales of 14,616 bopd, up 25% and down 5%, respectively, from Q1 2022, representing the Company’s seventh straight quarter of production growth, with unencumbered sales for the majority of the quarter;
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Completed well 11H on June 30, 2022, which produced over 300,000 barrels of oil over its first 30 full days on production, has paid out its capital investment, and averaged over 9,000 bopd from August 1 to 22, 2022;
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Achieved a new daily Company production record of 25,218 bopd on July 1, 2022 with production briefly reaching 26,000 bopd, representing the maximum capacity at the newly expanded Central Processing Facility (“CPF-2”);
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Sold approximately 86% of sales through the Brazilian route with the remaining 14% sold to the Iquitos Refinery while the Northern Peruvian Oil Pipeline (“ONP”) was offline, successfully redirecting 456,000 barrels from the ONP to the Brazilian market;
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Significantly reduced transportation costs through significantly reduced diluent blending requirements to Brazil, contributing to record low transportation costs of $3.4 million ($2.54/bbl);
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Generated record net operating income (“NOI”) and EBITDA(a) of $98.6 million and $93.4 million, respectively, both up three and a half fold from Q2 2021 levels and almost double from Q1 2022;
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Generated record free cash flow(a) of $69.4 million before changes in non-cash working capital and debt service, accumulating over $100 million, for the six months ended June 30, 2022;
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Invested approximately $24.0 million in capital expenditures (“Capex”), lower than revised guidance by $5 million, due to drilling delays from the March 2022 social protests. Approximately two thirds of Capex spent was for drilling and completion related investments with the remainder divided amongst smaller production operation projects;
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On April 1, 2022, the Company paid $20 million of principal to bondholders through the 101% call option mechanism set out in the bond agreement. As of June 30, 2022 and August 25, 2022, the Company is in compliance with all covenants; with $80 million of bond principal remaining; and,
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Exited the quarter with $77 million of total cash, including $13.5 million of restricted cash, and approximately ($79) million in net debt/(surplus)(1), a record level for the Company allowing for a future return of capital program in Q4 2022 or Q1 2023, with an extremely solid balance sheet profile.
(1) Net debt/(surplus) defined as cash and restricted cash + VAT receivable (short and long term) + trade receivables + short term and long term derivative assets – AP – short and long term leases – short and long term debt – derivative obligation
Selected Financial and Operational Highlights
Three Months Ended | Six Months Ended | ||||||||||||
(in thousands USD) | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||
Financial | |||||||||||||
Crude oil revenues | 118,435 | 42,809 | 211,187 | 75,165 | |||||||||
Royalties | (8,104 | ) | (2,306 | ) | (14,477 | ) | (4,054 | ) | |||||
Net operating income (1) | 98,589 | 29,677 | 162,783 | 49,647 | |||||||||
Commodity price derivative (gain)/loss | (6,533 | ) | 4,147 | (27,546 | ) | (18,365 | ) | ||||||
Net income | 84,249 | 11,373 | 148,759 | 42,159 | |||||||||
Diluted net income (US$/share) | 0.10 | 0.01 | 0.18 | 0.05 | |||||||||
Capital expenditures | 24,024 | 22,363 | 41,553 | 29,476 | |||||||||
Operating | |||||||||||||
Average production (bopd) | 14,467 | 8,839 | 13,114 | 8,089 | |||||||||
Average sales (bopd) | 14,616 | 8,842 | 15,065 | 8,711 | |||||||||
Average Brent price ($/bbl) | 111.80 | 69.01 | 101.54 | 64.28 | |||||||||
Contracted sales price, gross ($/bbl) | 111.39 | 66.55 | 99.42 | 62.79 | |||||||||
Netback ($/bbl)(2) | 74.13 | 36.88 | 59.70 | 31.49 | |||||||||
Funds flow provided by operations(2) | 60,688 | 19,627 | 66,432 | 24,094 | |||||||||
Balance sheet | |||||||||||||
Cash and restricted cash | 77,017 | 79,491 | |||||||||||
Working capital | 141,971 | 62,634 | |||||||||||
Total assets | 535,202 | 359,788 | |||||||||||
Current liabilities | 92,988 | 72,639 | |||||||||||
Equity | 357,732 | 180,291 |
1. Net operating income and Netback represent revenues less royalties, operating expenses, and direct transportation.
2. Netback per barrel (“bbl”) and funds flow provided by operations do not have standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. See “Selected Financial Measures” section.
Q2 2022 Financial Results
Record revenue. Oil revenue was $118.4 million ($89.04/bbl) compared to Q2 2021 of $42.8 million ($53.20/bbl) and Q1 2022 of $92.7 million ($66.41/bbl).
Record net operating income. Generated record NOI and EBITDA(a) of $98.6 million ($74.13/bbl) and $93.4 million ($70.26/bbl), respectively, compared to $29.7 million ($36.88/bbl) and $26.4 million ($32.87/bbl), respectively, in Q2 2021 and $64.2 million ($45.96/bbl) and $58.7 million ($42.58/bbl), respectively, in Q1 2022.
Capital investment. Capital expenditures in the quarter totalled $24.0 million and were focused on drilling and completing well 11H and advancing infrastructure projects. The total represented approximately 88% of the budget, due to deferral of drilling activity as a result of the social protest activity in March 2022, and deferral of additional facility and water disposal work until 2023. First half 2022 capital expenditures are $41.6 million, trending well under the $70.0 million approved budget.
Record Q2 and YTD 2022 free cash flow. Generated record free cash flow(a) before changes in non-cash working capital and debt service of $69.4 million. Total free cash flow for the six months ended June 30, 2022 has surpassed $100 million, significantly boosting the Company’s liquidity profile.
Lower operating costs. Total quarterly lifting costs were $8.4 million ($6.28/bbl), a decrease from Q1 2022 of $10.1 million ($7.20/bbl) and from Q2 2021 of $5.5 million ($6.84/bbl), driven by lower contracted operations and COVID 19 expenses.
Record low transportation costs. Diluent and barging costs were $3.4 million ($2.54/bbl) in the quarter, reduced significantly from $12.1 million ($8.68/bbl) in Q2 2022, and down from $5.3 million ($6.61/bbl) in Q2 2021. The decrease was supported by lower barging standby time, and significantly lower diluent and diesel costs from shipping through the Brazil and Iquitos routes instead of incurring ONP costs.
G&A on budget. Q2 2022 G&A was $5.1 million ($3.87/bbl) compared to $4.7 million ($3.38/bbl) in Q1 2022 and $3.2 million ($4.01/bbl) in Q2 2021 representing a 15% and 3% increase and decrease, respectively, on a per barrel basis.
Record net income. Net income was $84.2 million an increase of 31% over Q1 2022 of $64.5 million and significantly exceeding $11.4 million in Q2 2021.
Balance sheet reflects a record net debt/(surplus) position. Net debt/(surplus) was approximately ($79) million as at June 30, 2022, as defined internally by the Company.
Large net derivative asset balance. The total net derivative asset on the balance sheet as at June 30, 2022 was $56.8 million, consisting mostly of the true up value of oil in the ONP. As at June 30, 2022 approximately 3.1 million barrels remained in the ONP backstopping the net derivative value with a much lower cost base from sales made in 2020 and 2021. With the ONP maintenance estimated to be completed in October 2022, and the pipeline operational again, the schedule to realize the derivative value has shifted primarily into 2023, which will further supplement the Company’s expected cash reserves.
Operational and Financial Highlights Subsequent to June 30, 2022
Bayovar Export Realized. As announced on June 16, 2022 and July 5, 2022, Petroperu delivered approximately 550,000 barrels through the ONP to Bayovar and exported nearly 720,000 barrels to an international refiner. The Company expects to receive $53.9 million from Petroperu, net of usual ONP fees and adjustments. Post this Bayovar export, the amount of oil remaining in the ONP dropped from 3.1 million barrels to approximately 2.4 million barrels.
Navigating barging challenges. During July, the Company encountered barging delays that were compounded by the closure of the ONP, resulting in production constraints that lowered the average production to 5,700 bopd from July 7 until July 25. The Company has secured approximately 420,000 barrels of export barging capacity for August 2022 plus 60,000 barrels for the Iquitos Refinery which has allowed production to increase to 19,000 bopd since August 22, 2022. PetroTal continues to explore long term solutions to ensure appropriate barging capacity is available to accommodate higher oil production rates and to optimize logistics and barging fleet size for our Brazilian route.
Drilling schedule adjustments. Due to well servicing and a conductor pipe placement for a future well, the Company’s revised drilling plan now schedules drilling the 13H well to be followed by the 12H well. The 13H was spud on August 24, 2022 and is estimated to be on production by late October.
Current liquidity update. Current total cash as at August 15, 2022 is approximately $115 million including $15 million in restricted cash and up to date payments from our Brazilian route shipping counterparty, but not including outstanding amounts owing from Petroperu.
Corporate Hedging Update. PetroTal recently sold a swap at $62.05/bbl and bought a call at $70.00/bbl on approximately 750,000 barrels of H2 2022 production. PetroTal will receive cash when the Brent oil price is above $70/bbl, and will have a floor price of $62.05/bbl. After this hedge, the Company is approximately 25% hedged on corporate production volumes in Q3 and Q4 2022. As 2022 progresses, the Company will look to layer in additional hedges for H1 2023 on up to 25% of total corporate production.
Ten million barrels produced. On August 22, 2022, the Company formally surpassed the ten million barrels of produced oil milestone in only four years.
Reiterating 2022 Guidance
The Company is reiterating guidance provided in May 2022 as navigated a number of logistical issues caused by the ONP shut down and barging fleet delays. The Company estimated 2022 average production to be between 15,000 bopd and 16,000 bopd and the latest production forecast confirms the lower end of this range. Thanks to higher oil prices and lower diluent costs, the Company maintains EBITDA to be approximately $340 million and associated free cash flow before working capital and debt service to be approximately $230 million. The reiterated guidance is highly dependent on certain sales route availability assumptions, ONP maintenance completion schedules, and Petroperu’s unencumbered access to credit, which if different from current estimates could materially alter the reiterated guidance.
As a result of the revised drilling schedule, the Company is guiding 15,000 bopd, and has adjusted Q3 and Q4 2022 production profiles to the following levels as dictated by available sales scheduling:
Adjusted Guidance | Q1 (actual) | Q2 (actual) | Q3 | Q4 | 2022 |
Oil wells completed | 1 (10H) | 1 (11H) | 0 | 2 | 4 |
Average Production (bopd) | 11,746 | 14,467 | 14,250 | 19,500 | 15,000 |
CAPEX (millions) | $18 | $24 | $29 | $40 | $111 |
USD millions | Guidance |
Contracted Brent (USD/bbl) | $102 |
Average Production (bopd) | 15,000 – 16,000 (25% downtime) |
Net operating income | $351 |
G&A | ($22) |
Net derivative settlements(1) | $13 |
Adjusted EBITDA1 | $342 |
CAPEX | ($111) |
Free cash flow | $231 |
(1) Approximately $33 million in anticipated 2022 true-up revenue has now been deferred into 2023 as a result of the ONP maintenance.
Updated Corporate Presentation, investor webcast and AGM reminder
PetroTal will host an investor webcast on August 25, 2022 at 9:00 am CT (3:00 pm BST), following release of the Q2 2022 results. The Company has also provided an updated corporate presentation inclusive of the Q2 2022 results, on its website. PetroTal’s 2021 AGM will be held virtually on September 15, 2022.
Link to PetroTal Q2 2022 webcast
https://stream.brrmedia.co.uk/broadcast/62e8f64f04182f363ba99aa2
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented,
“We would like to thank our entire team for another record quarter on many fronts. Though we have experienced recent production constraints from short term sales bottlenecks, unconstrained production run rates are over 20,000 bopd which we successfully tested in our facilities. The outlook for PetroTal’s low sulfur oil remains incredibly robust with recent strong export demand realized. We continue to meet commercial challenges head on and are excited about potential short- and long-term solutions for PetroTal’s river transportation options. From a social perspective, the 2.5% social fund working table sessions have been extremely productive, transparent, and aligned, creating the necessary stability our field has strived for over the years. Many milestones have yet to be achieved, however, the initiatives remain on track and functioning as planned with more formal updates on this to come in H2 2022. Finally, I would like to congratulate the entire PetroTal team on our recent milestone of ten million barrels produced in only four short years since first production.”
ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100% working interest in Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the largest crude oil producer in Peru. The Company’s management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For the full release, visit: http://www.petrotal-corp.com/
PetroTal is commited to the preservation of biodversity through a forest restoration project – ProActivo
World Environment Day was celebrated last Sunday, a date to value the importance of caring for our planet and, therefore, of actions in favor of its sustainability. Faced with the latter, and as part of its Environmental Compensation Plan, PetroTal, a company led and operated by Peruvians, has been executing the Forest Restoration Program, which aims to recover the ecosystem of an Amazonian forest of 7.45 hectares, degraded by natural flooding in the area.
See the full article here.
See more about PetroTal here.
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TAG Oil announces its FY2022 results
Press Release
TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its financial results for the fiscal year ending March 31, 2022. A copy of TAG Oil’s financial statements and management discussion and analysis for its most recently completed financial year are available on SEDAR (www.sedar.com) and on the Company’s website (https://tagoil.com/investors/financial-reports/).
Highlights over the period include that the Company had C$13.3 million (December 31, 2021: C$14.1 million) in cash and cash equivalents and C$15.4 million (December 31, 2021: C$15.8 million) in working capital and has no debt. TAG Oil continues to manage its costs and allocate the necessary resources towards its business development efforts in Egypt and other areas in the Middle East and North Africa region.
As previously announced, the Company is continuing to make significant progress on a few key strategic opportunities in Egypt. TAG Oil expects to have an update on the status of one or more of these transactions by the end of calendar Q3.
About TAG Oil Ltd.
TAG Oil is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For more infomation, visit TAG Oil’s website: http://www.tagoil.com/
PetroTal provides sales update
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) is pleased to announce the following sales related update.
720,000 barrels of oil under contract for export from Bayovar. Approximately 720,000 barrels of PetroTal’s Bretana oil has now been successfully tendered at the Bayovar port by Petroperu for the July lifting. Following an accelerated and temporary re-opening of section II of the Northern Peruvian Pipeline (“ONP”) which had been previously closed due to maintenance operations, Petroperu has been able to deliver a material amount of oil to Bayovar over recent weeks. This oil previously entered the ONP in 2020 and was part of the restructured oil sales arrangement with Petroperu, announced in late 2020, with the Company receiving approximately $45/bbl of value. PetroTal will receive the difference between this tender price and the restructured $45/bbl price in the contract, generating over $60 million of price adjustment revenue.
Section II of the ONP line temporarily online. Petroperu recently informed PetroTal that it was able to temporarily pump all the oil from Station 5 (approximately 550,000 barrels) to the Bayovar port. The ONP section II has an approximate capacity of 2.1 million barrels with an estimated 82% being Bretana oil. Section I of the line between pump stations 1 and 5 remains closed due a maintenance delay from ongoing social protests in one community near pump station 1.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
“We applaud Petroperu’s efforts to resume partial pipeline operations in a safe and reliable way. The true up revenue to be received from this tender was previously anticipated in Q4 2022 and will provide assurance that we can execute our shareholder strategy on time and as indicated in our corporate presentation.”
ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100% working interest in Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the largest crude oil producer in Peru. The Company’s management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For the full release, visit: http://www.petrotal-corp.com/
Food Union creates ice cream in colours of Ukrainian national flag
Press Release
In solidarity with Ukraine’s fight for freedom, Latvia’s leading milk processing and ice cream production company Food Union has created a special ice cream in the colours of the Ukrainian national flag. With a symbolic purpose, the ice cream recipe incorporates floral flavours made from natural materials: elder and cornflower in the blue part of the ice cream and the softness of saffron in the yellow part, creating a unique composition of flavours. The cold delicacy has been named “Слава України” (Glory to Ukraine), a slogan expressing support for Ukrainian sovereignty and resistance.
“This ice cream is a tribute to the courage and love of freedom of the Ukrainian people. More importantly, it is a reminder to every resident of Latvia that a terrible war is still going on in Ukraine, therefore we must continue to help its people even after the first wave of support has subsided,” emphasizes Food Union Director General in Latvia Irēna Holodnaja. “Development of an ice cream dedicated to Ukraine was an emotionally significant event for our team. Everyone involved in the development of the ice cream had a sense of belonging and the opportunity to support Ukrainians through what we do best – developing and producing delicious products of very high quality. Our experience from 2018, when we created ice creams in the colours of the national flags of Latvia, Estonia and Lithuania to celebrate their 100th anniversary, also came in handy,” adds Irēna Holodnaja.
The ice cream dedicated to Ukraine was presented to the public for the first time today, June 18, when Blue-Yellow Ice Cream Festival was organized for the Ukrainian community at day centre Common Ground. Ice cream lovers young and old not only had a chance to be the first to taste “Слава України” ice cream, but also other most popular and delicious ice creams produced by Food Union, meet clown doctors, play football and blow big soap bubbles.
“We are grateful to every person and company that continues to provide assistance, so that people who have found refuge in Latvia from the protracted war in their country could realistically hope for peace and a quick return home. Thank you Food Union for a special product dedicated to the community of Ukrainians! What else if not ice cream can bring so much joy and a bit of comfort in the summer season,” says Common Ground founder Ieva Irbina.
The blue-and-yellow ice cream will be available free of charge to residents of Ukraine at the Riga Support Centre (1 Kaļķu Street) and the Common Ground day centre for Ukrainian residents (17 Andrejostas Street 27), as well as at Ekselence summer booths in Riga and Jūrmala upon presentation of Ukrainian ID documents.
In addition, “Слава України” ice cream in limited quantities will be available for purchase from June 18 on Food Union online store Pienaveikals.lv and at Ekselence summer booths in Riga and Jūrmala. EUR 1 from each ice cream sold will be donated to Ukrainian children’s protection organization “Голоси дітей” (Children’s Voices) with the support of Ziedot.lv.
As reported, since March 9 of this year, Food Union has been supporting the Riga Support Centre for Ukrainian residents with fresh dairy products on a daily basis: sour cream, Rasa butter, Limbažu Piens milk and cheeses, Dzintars cheeses, Lakto yogurts, Kārums curd snacks and desserts, milk beverages Rasēns. According to Pēteris Grūbe, head of the Riga Support Centre for Ukrainians, these deliveries provide meals for more than 700 people each day. Several truckloads of dry milk powder and milk beverages have also been shipped to Ukraine to support the Ukrainian army, hospitals and national defence units. Cream cheese Rasa, which was stored in Ukrainian warehouses and was intended for sale, was donated to local residents once the war started.
Find out more about Food Union here.
PetroTal is fuelling the success of Peru’s oil industry – Financial Post
The company is focused on the acquisition, development and exploration of material oil assets in Peru
PetroTal Corp. (TSXV:TAL) is an oil and gas development and production company domiciled in Calgary, Alta., focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100 per cent working interest in the Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018.
In early 2022, PetroTal Corp. became the largest crude oil producer in Peru and has been recognized by TSXV, which has named the company as one of the winners in this year’s TSX Venture 50.
See the full article here.
See more about PetroTal here.
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Afentra enters Angolan upstream – Petroleum Economist
Simon Ferrie – Petroleum Economist
The UK independent has acquired stakes in two blocks from Sonangol
“We think of Angola’s upstream as similar to the North Sea around 15 years ago,” Paul McDade, CEO of London-listed independent Afentra, tells Petroleum Economist. McDade was speaking shortly after the company announced the signing of an SPA with Angolan state-owned Sonangol to purchase stakes in blocks 3/05 and 23. The company purchased its 20pc non-operating stake in block 3/05—which produces c.17,000bl/d and will continue to be operated by Sonangol—for an initial consideration of $80mn and a contingent payment of up to $50mn. Afentra’s net share of 2P reserves is around 20mn bl, while the asset’s breakeven price is $35/bl. The block is a “cash-generative asset”, emphasises McDade. Afentra’
See the full article here.
See more about Afentra here.
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Lunn rewriting South Africa’s oil strategy- upstream
Ian Esau – upstream
The new bill going through parliament owes much to entrepreneur’s powers of persuasion and ability to thrive in “impossible” situations
Oil and gas entrepreneur Sean Lunn is determined to improve the socio-economic conditions of his native South Africa.
Despite legal challenges, he believes the nation’s hydrocarbon resources are “potentially so big and could make such a difference to our socio-economic environment, they cannot be ignored”.
A respected figure in southern African upstream circles, Durban-born Lunn and his wife Julie have their hands full with 10-year-old twin boys, also budding entrepreneurs it would seem.
After a decade or so in investment banking, 45-year-old Lunn sharpened his upstream acumen as Impact Oil & Gas’ country manager for South Africa and Namibia, and for seven years was also point man for the Offshore Petroleum Association of South Africa (Opasa) during its tough negotiations with government over upstream legislation.
See the full article here.
See more about FAR Ltd here.
FEATURED IN
Oil and gas entrepreneur Sean Lunn rewriting South Africa’s oil strategy
New bill going through parliament owes much to entrepreneur’s powers of persuasion and ability to thrive in “impossible” situations.
Despite legal challenges, he believes the nation’s hydrocarbon resources are “potentially so big and could make such a difference to our socio-economic environment, they cannot be ignored”.
A respected figure in southern African upstream circles, Durban-born Lunn and his wife Julie have their hands full with 10-year-old twin boys, also budding entrepreneurs it would seem.
After a decade or so in investment banking, 45-year-old Lunn sharpened his upstream acumen as Impact Oil & Gas’ country manager for South Africa and Namibia, and for seven years was also point man for the Offshore Petroleum Association of South Africa (Opasa) during its tough negotiations with government over upstream legislation.
Food Union invests in premium ice cream – dienas bizness
Dienas Bizness
After investing €80,000, Food Union has supplemented the range of premium ice cream brand Ekselence with three new flavours, as well as created a new design for the brand’s packaging.
Read the full article here.
FEATURED IN
Afentra makes Angola debut with $80 million offshore purchase – Energy Capital & Power
London-listed oil and gas independent Afentra has signed a sales and purchase agreement (SPA) with Angola’s national oil company, Sonangol, for stakes in two offshore blocks in the Lower Congo and Kwanza Basins. Marking the entry of the UK independent into the southern African country, the deal comprises an $80 million upfront payment for stakes in Block 3/05 and Block 23, offshore Angola.
As per the terms of the deal, in addition to the $80 million upfront cash commitment, Afentra could likely pay up to $50 million in contingent payments for Block 3/05 and $500.000 for Block 23. The SPA will see Afentra holding a 20% non-operated interest and a 40% non-operated interest in Block 3/05 and Block 23, respectively. Sonangol will remain the operator of Block 3/05 with a 30% interest while holding a non-operating stake in Block 23 at 20%.
See the full article here.
See more about Afentra here.
FEATURED IN
PetrolTal 2021 year-end financial and operating results
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) is pleased to announce its financial and operating results for the year and three months (“Q4”) ended December 31, 2021.
Selected financial, reserves and operational information is outlined below and should be read in conjunction with the Company’s audited consolidated financial statements (“Financial Statements”), management’s discussion and analysis (“MD&A”) and annual information form (“AIF”) for the year ended December 31, 2021, which are available on SEDAR at www.sedar.com and on the Company’s website at www.PetroTal‐Corp.com. Reserve amounts presented herein were derived from an independent reserves report (the “NSAI Report”) prepared by Netherland, Sewell & Associates, Inc. (“NSAI”) effective December 31, 2021. All amounts herein are in United States dollars (“USD”) unless otherwise stated.
2021 Significant Milestones and Highlights
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Achieved production of 8,966 barrels of oil per day (“bopd”) and sales of 8,449 bopd, up 58% and 48%, respectively, from 2020;
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Recorded a 5th straight quarter of production growth; reaching 10,147 bopd in Q4 2021 from 9,508 bopd in Q3 2021;
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Achieved a four year Company target of 20,000 bopd in mid December 2021 underpinned by strong production rates from the newly drilled 8H and 9H wells in late Q3 and Q4 2021 that each reached over 8,500 bopd, respectively;
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Generated record net operating income (“NOI”) and EBITDA(a) in 2021 of $105 million and $90 million, up approximately 3.6x and 5x, respectively, from 2020;
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Generated record funds flow provided by operations(a), before changes in working capital of $86.7 million, up over 5x from 2020;
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Grew proved plus probable (“2P”) and proved plus probable plus possible (“3P”) reserves by 53% and 39%, respectively, to 78 and 147 million barrels of oil (“bbl”);
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Material progression of 2P after tax net present value discounted at 10% (“NPV-10”) reserve value per share of $1.23, up 62% from 2020;
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Generated 2021 proved (“1P”) and 2P reserve replacement ratios of 457% and 816%, respectively; and,
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Created the framework for a social trust representing 2.5% of production, to create long standing alignment between communities and government, with a view to minimizing social downtime, maximizing social profitability, and developing community projects that will have a significant positive impact near the Company’s Bretana oilfield.
Selected Financial and Operational Highlights
Three Months Ended | Twelve Months Ended | |||||||||||
(in thousands USD) | Dec 31, 2021 | Sept 30, 2021 | Dec 31, 2021 | Dec 31, 2020 | ||||||||
Financial | ||||||||||||
Crude oil revenues | 39,243 | 44,781 | 159,189 | 76,593 | ||||||||
Royalties | (2,304 | ) | (2,604 | ) | (8,962 | ) | (2,877 | ) | ||||
Net operating income (1) | 25,726 | 29,587 | 104,960 | 28,881 | ||||||||
Commodity price derivative (income)/loss | 5,622 | (293 | ) | (13,036 | ) | 4,788 | ||||||
Net income (loss) | 6,843 | 14,970 | 63,972 | (1,524 | ) | |||||||
Basic and diluted net income (loss) (US$/share) | 0.01 | 0.02 | 0.08 | (0.00 | ) | |||||||
Capital expenditures | 26,601 | 26,114 | 82,191 | 42,297 | ||||||||
Operating | ||||||||||||
Average production (bopd) | 10,147 | 9,508 | 8,966 | 5,675 | ||||||||
Average sales (bopd) | 7,242 | 9,142 | 8,449 | 5,700 | ||||||||
Average Brent price ($/bbl) | 79.79 | 73.21 | 70.82 | 43.20 | ||||||||
Contracted sales price, gross ($/bbl) | 77.46 | 71.06 | 68.22 | 43.02 | ||||||||
Netback ($/bbl)(1) | 38.61 | 35.18 | 34.03 | 13.84 | ||||||||
Funds flow provided by operations(2) | 34,714 | 18,648 | 77,456 | 13,341 | ||||||||
Balance sheet | ||||||||||||
Cash and restricted cash | 74,459 | 57,655 | 74,459 | 9,628 | ||||||||
Working capital | 47,319 | 56,455 | 47,319 | (22,157 | ) | |||||||
Total assets | 398,288 | 373,261 | 398,288 | 215,138 | ||||||||
Current liabilities | 84,767 | 69,785 | 84,767 | 58,608 | ||||||||
Equity | 204,257 | 195,572 | 204,257 | 137,163 |
(1) Net operating income obtained from revenues less royalties, operating expenses, and direct transportation.
(2) Netback per barrel (“bbl”) and funds flow provided by operations do not have standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. See “Selected Financial Measures” section.
2021 Operational highlights
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Robust well results. Completed one deviated and two horizontal oil wells in 2021. Both horizontal wells had the longest laterals ever drilled in Peru with production rates in excess of 8,500 bopd during the first month, and both paying out in under two months. Well 7D, drilled as a deviated well in the spring of 2021, had rates in excess of 4,000 bopd and has produced over 0.5 million bbl in under one year.
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Infrastructure achievements. Achieved significant infrastructure milestones in 2021 with the completion of all major construction work on CPF-2 and the completion and coring of an additional water disposal well, essentially doubling water disposal capacity to 100,000 barrels of water per day and allowing the field to produce up to 26,000 bopd of oil.
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Material reserves increases. Delivered excellent 2021 reserve report upgrades with increases for 1P, 2P, and 3P reserves by 68%, 53%, and 39% to 37.4, 77.9 and 147.1 million barrels, respectively. In addition, PetroTal was able to decrease 2P Finding and Development Costs (“F&D”) by 6% to $4.68/bbl while adding seven 2P locations plus related infrastructure, leading to a record 2P after tax NPV-10 of just over $1 billion.
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Expanded Brazilian sales. Created a highly successful third sales route to market into the Atlantic region through Brazil that has surpassed the Northern Peruvian Pipeline (“ONP”) as the Company’s second most profitable sales route. The first pilot cargo, completed in December 2020 was 106,000 barrels, and during 2021 PetroTal built a strong trusted commercial relationship that will allow Brazilian shipments of 400,000 barrel cargos (without the need for diluent blending), thereby providing a safe and stable offtake of nearly 14,000 bopd at attractive netbacks.
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Social alignment mechanism established. In an effort to facilitate long standing alignment between the government and communities, PetroTal announced and submitted a proposal to the Peruvian Ministry of Energy and Mines for creation of a new social trust aimed to promote direct investments into the Loreto region. The fund will be based on 2.5% of crude oil production, payable over two week periods and calculated using the same methodology as Perupetro applies for royalties. The fund committee and investment legal entities are in the process of being created with full transparency and auditability to the public.
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2021 capital program executed and optimized. PetroTal’s 2021 Capex investment totaled $82 million in 2021 compared to $42 million in 2020, which was significantly curtailed due to the COVID-19 pandemic.
2021 Financial highlights
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Leverage to kickstart development. Successfully executed a $100 million senior secured bond issue at the trough of the oil price commodity price cycle with payment terms and amortization optimized to impact the Company in a much stronger oil macro backdrop, allowing PetroTal to commence its 2021 capital program in March 2021 with a sound liquidity injection.
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Record net revenue. Delivered net revenue after differentials and royalties of $150 million ($48.70/bbl) compared to 2020 of $74 million ($35.58/bbl).
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Record net operating income. Generated record NOI and EBITDA(a) of $105 million ($34.03/bbl) and $90 million ($29.31/bbl), respectively, as compared to $28.9 million ($13.84/bbl) and $18.3 million ($8.77/bbl), respectively, in 2020.
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Successful 2021 capital program. Executed an $82 million Capex program (originally budgeted at $101 million), deferring some non-essential infrastructure projects into 2022 to match with higher Brent pricing and more fluid labor movement.
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Positive 2021 free cash flow. Generated annual net positive free cash flow(a) before changes in non cash working capital and debt service of $8.4 million, a first for PetroTal.
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True up revenue realized. Received true-up payments from Petroperu of approximately $28.6 million in 2021 from oil reaching the Bayovar port and being sold at a higher price than originally received at pump station 1 of the ONP, enhancing financial metrics, and provided tailwind liquidity throughout the year.
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Scalable lifting costs. Maintained total lifting costs between $5.1 and $5.5 million per quarter in 2021 demonstrating significant scalability as production grew 60% from Q4 2020 to Q4 2021. On an annualized basis lifting costs were $21.5 million ($6.99/bbl) for 2021 compared to $15.7 million ($7.51/bbl) in 2020.
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Variable costs impacted by higher Brent pricing. Diluent and barging costs were $23.7 million ($7.68/bbl) in 2021 as compared to approximately $14.3 million ($6.85/bbl) in 2020. Increased per barrel metrics are attributed to higher barging diesel, diluent, and floating storage costs in 2021, compared to 2020.
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Reduced G&A per barrel. 2021 G&A of $14.3 million ($4.63/bbl) compared to $10.6 million ($5.07/bbl) in 2020, demonstrating a per barrel reduction of 10% and less than a 10% burden on adjusted EBITDA margins.
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Record 2021 net income. 2021 net income was a record $63.2 million ($0.08/share) compared to a net loss of $1.5 million ($0.00/share) in 2020 driven by higher commodity prices, sales volumes and a derivative gain related to sales volumes moving through the ONP valued at a higher Brent price compared to initial entry into the ONP.
Operation and Financial Highlights Subsequent to December 31, 2021
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Leverage reduction. Due to early robust 2022 free cash flow generation and strong liquidity, PetroTal elected to repay $20 million of the original $100 million bond issue, on April 1, 2022, reducing its total long term debt to $80 million, thereby lowering future interest costs.
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Exceptional continued well performance. Achieved a 10 day record production level for well 10H of 10,050 bopd allowing the Company to set a new total production record of 20,891 bopd for February 2022, and well payout in under a month.
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CPF-2 approved. Received approval by Peruvian regulators for full commissioning and fluid processing of CPF-2 so that up to 26,000 bopd can be processed by PetroTal.
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Free cash flow focused 2022 budget. On February 22, 2022, PetroTal announced a $120 million fully funded capital program that could potentially generate up to $230 million of free cash flow in 2022, allowing the Company the optionality to redeem the remaining $80 million in bonds early and implement its return of capital to shareholders strategy in Q4 2022, subject to Board approval.
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TSX-V award winner and OTCQX Best Market upgrade. PetroTal was recognized as a top TSX Venture exchange performer for 2021 ranking 10th in the energy sector and in mid January 2022, PetroTal upgraded to the OTCQX Best Market in the United States under the ticker symbol PTALF.
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Establishment of the 2.5% social trust brings interim dispute. The establishment of the 2.5% social trust brought some anticipated demands from a minority group wanting to control the trust capital allocation process. This resulted in the Company’s oil loading dock been blocked for five weeks requiring the intervention of Peru’s Prime Minister and the government’s full attention to the area’s social disputes.
Operational and Financial Highlights for Q4 2021
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Continued production growth. PetroTal produced 10,147 bopd and averaged 7,242 bopd in sales, which was impacted by social disruptions at the ONP, along with intermittent downtime leading to constrained production schedules, compared to Q3 2021 production and sales of 9,508 bopd and 9,142 bopd, respectively.
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20,000 bopd production target achieved. The Company, with boosts from well 8H and 9H, achieved a five day trailing production rate of 20,000 bopd ending December 15, 2021, reaching its long standing target only four years after commencing operations at the Bretana oil field.
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Completion of well 8H. Well 8H was completed in late Q3 2021 for under $12 million, had initial production rates in excess of 8,500 bopd, paying out in Q4 2021 from realized netbacks of over $38.00/bbl.
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Completion of well 9H. Well 9H, completed in early December 2021, achieved approximately 9,000 bopd in early testing, averaging 8,200 bopd for the subsequent ten-day period.
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Strong net operating income despite constrained sales. PetroTal generated $25.7 million in net operating income in Q4 2021, a decrease from $29.6 million in Q3 2021, driven by lower sales volumes stemming from social protests in November and December 2021.
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Capex optimization. The Company invested $26.6 million in Q4 2021, up slightly from the prior quarter due to ongoing consistent drilling activities in the second half of 2021.
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Continued and expanding Brazilian exports. PetroTal continued to utilize the Brazilian shipping route in Q4 2021, exporting 320,000 barrels in November and December 2021 compared to only 106,000 barrels in Q4 2020.
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Opex and Transportation cost flexibility. Lifting expense and direct transportation costs were $11.2 million ($16.82/bbl) in Q4 2021 compared to $12.6 million ($14.97/bbl) in Q3 2021, and $10.7 million ($21.23/bbl) in Q4 2020. During Q4 2022, the Company effectively utilized barges for oil storage to manage production and sales fluctuations during social disruptions.
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Strong Q4 2021 exit liquidity. Exited 2021 with strong balance sheet liquidity of $75.0 million in total cash and approximately $57.0 million of net debt which was approximately 0.63x net debt to 2021 EBITDA.
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Growing derivative asset. The exit Q4 2021 net derivative asset was $36.7 million, representing the mark to market value of oil in the ONP, corporate hedges, and ONP hedges.
Operation and Financial Highlights Subsequent to December 31, 2021
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Leverage reduction. Due to early robust 2022 free cash flow generation and strong liquidity, PetroTal elected to repay $20 million of the original $100 million bond issue, on April 1, 2022, reducing its total long term debt to $80 million, thereby lowering future interest costs.
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Exceptional continued well performance. Achieved a 10 day record production level for well 10H of 10,050 bopd allowing the Company to set a new total production record of 20,891 bopd for February 2022, and well payout in under a month.
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CPF-2 approved. Received approval by Peruvian regulators for full commissioning and fluid processing of CPF-2 so that up to 26,000 bopd can be processed by PetroTal.
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Free cash flow focused 2022 budget. On February 22, 2022, PetroTal announced a $120 million fully funded capital program that could potentially generate up to $230 million of free cash flow in 2022, allowing the Company the optionality to redeem the remaining $80 million in bonds early and implement its return of capital to shareholders strategy in Q4 2022, subject to Board approval.
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TSX-V award winner and OTCQX Best Market upgrade. PetroTal was recognized as a top TSX Venture exchange performer for 2021 ranking 10th in the energy sector and in mid January 2022, PetroTal upgraded to the OTCQX Best Market in the United States under the ticker symbol PTALF.
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Establishment of the 2.5% social trust brings interim dispute. The establishment of the 2.5% social trust brought some anticipated demands from a minority group wanting to control the trust capital allocation process. This resulted in the Company’s oil loading dock been blocked for five weeks requiring the intervention of Peru’s Prime Minister and the government’s full attention to the area’s social disputes.
Current Operations
The Company’s loading dock was re-opened on April 7, 2022 and PetroTal has been producing approximately 18,200 bopd over the last 10 days with priority sales going to Iquitos and Brazil thereafter. Until the ONP maintenance is completed, the Company will be managing production volumes to fit the Iquitos and Brazil sales threshold of nearly 16,000 bopd.
PetroTal is currently preparing to drill well 11H in early May with a late June or early July completion, at an estimated cost of $15.6 million.
Updated Corporate Presentation and upcoming investor update
PetroTal is excited to announce it will be hosting a virtual investor meeting on May 26, 2022 following the release of Q1 2022 results. The objective of management will be to provide updates on certain aspects of the Bretana asset and to communicate the Company’s short and long term strategy. The Company has provided an updated corporate presentation with these 2021 results, on its website.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
“2021 will be remembered for many significant operational, commercial and financial milestones achieved by the PetroTal team. When unconstrained, PetroTal is the largest crude oil producer in Peru and our management team is well aware of the responsibilities and deliverables that accompany that stature. Our goals for 2022 are very clear, and given the tailwind of a robust commodity price environment aiding us, we believe the Company can add tremendous value. Having met our original goal of 20,000 bopd, the team is now focused on achieving a new production target of 25,000 bopd with minimal social downtime. I would like to thank PetroTal’s shareholders, directors, employees, and contractors for their continued support and I look forward to keeping the market updated on the Company’s progress throughout the remainder of 2022.”
For the full release, visit: http://www.petrotal-corp.com/
Afentra announces its annual results for the year ended 31 December 2021
Press Release
Afentra plc (‘Afentra’ or the ‘Company’), is pleased to announce its annual results for the year ended 31 December 2021.
2021 SUMMARY
Strategic
· Established a new Executive team and Board, introduced new institutional and high net worth shareholders.
· Rebranded Sterling Energy to Afentra (‘African Energy Transition’) with a strategic imperative of capitalising on opportunities resulting from the accelerating energy transition on the African continent.
· Established key focus areas with a comprehensive strategy to capture production and development assets in Africa and create value for all stakeholders.
· Built a small, focused team with a history of identifying and acquiring high quality assets, to rapidly assess business development opportunities technically, operationally and commercially.
· Developed a robust Governance and ESG framework to support future growth ambitions.
Operations
· Submitted a non-binding Expression of Interest to purchase interests in Block 3/05 and Block 23 in Angola.
· The Company continued to support the Operator of the Odewayne block, Somaliland, in progressing the technical understanding of the block; and continued to review its technical assessment and outlook on block prospectivity.
Financial Highlights
· Cash resources net to the Group at 31 December 2021 of $37.7 million (2020: $42.7 million).
· Adjusted EBITDAX1: loss for the Group of $2.0 million (2020: $761k loss).
· The Group remains debt free and fully carried for Odewayne operations (Third and the Fourth Period).
1defined within the definitions and glossary of terms
Post year end highlights
· In April, Afentra named preferred bidder to purchase interests in Block 3/05 and Block 23.
· Afentra progressing final due diligence ahead of finalising Sales and Purchase Agreement (SPA) with Sonangol.
Commenting, CEO Paul McDade, said:
“2021 was a year of transformation for Afentra. The Company underwent a significant change of strategic focus and is now extremely well placed to execute on our strategy to identify and responsibly develop African opportunities and create value for all stakeholders. Sonangol’s recent announcement of our preferred bidder status for Block 3/05 and Block 23 in Angola moved Afentra one step closer to completing its first acquisition and we look forward to moving ahead with that opportunity as we seek to underpin the Company with stable cash flow and reserves.
As we look forward to 2022, our focus remains on the implementation of our growth strategy, building scale and stakeholder value within the Energy Transition in Africa. With a strong balance sheet and an exceptional team behind us, the board and management are excited for the journey ahead and look forward to updating shareholders on our progress. “
For the full press release, see here.
Food Union is investing 25,000 euros in the development of yoghurt cocktails – dienas bizness
Dienas Bizness
The milk processing company “Food Union” has expanded the innovative offer of the “Valmiera” brand with two new “Shake Me Up” yogurt cocktails, investing 25,000 euros in their development.
The new yogurt shakes are cherry and banana flavored, as well as cookies and cream flavored.
Read the full article here.
FEATURED IN
Afentra provides an Acquistion update
Press Release
Negotiations continue with Sonangol; shares remain suspended
Afentra plc (‘Afentra’ or the ‘Company’) confirms that negotiations with Sonangol E.P (‘Sonangol’)1 to purchase interests in Block 3/05 and Block 23 (the “Acquisition”) in Angola have continued into the new year. This follows the announcement on 8 October 2021 that the Company had submitted a non-binding Expression of Interest for the two blocks and the subsequent suspension of its shares.
Since submitting the Expression of Interest, Afentra has been engaged in negotiations with Sonangol to reach agreement on the detailed terms of the transaction. These negotiations are ongoing but there is, however, no guarantee at this stage that an agreement between the two companies will be reached. The Acquisition would be subject to satisfactory completion of the necessary due diligence and agreement of a sale and purchase agreement with Sonangol.
If Afentra ultimately proceeds with the Acquisition, it would be classified as a reverse takeover transaction in accordance with Rule 14 of the AIM Rules for Companies. Trading in Afentra shares will remain suspended until either the publication of an AIM admission document, or until confirmation is given that Afentra’s participation in the bid process has ceased.
Whilst the timeline of the Sonangol sales process has been extended beyond the previously expected timetable, this has not diverted Afentra from the pursuit of other production assets in West Africa. The Company continues to appraise multiple acquisition opportunities that support its growth strategy in terms of acquiring assets across West Africa with solid low-cost production, proven reserves and significant upside. The Company remains disciplined in its screening process to ensure all targets meet the operational, commercial and environmental factors that comprise its focussed acquisition criteria.
The Company will make further announcements as appropriate.
Paul McDade, Chief Executive Officer, Afentra plc, commented today:
“We are pleased that we were selected by Sonangol to negotiate for Block 3/05 and Block 23 in Angola, and have been working diligently to find a mutually attractive outcome for both parties.
Given our ambition to build an African business of scale, we also remain focussed on identifying additional value-accretive opportunities across West Africa and are engaged in a number of active acquisition processes. We continue to screen opportunities in jurisdictions that we know well and look forward to updating the market at the appropriate time on the first deal for the Company.”
Notes:
1In June 2021 Sonangol, Angola’s national oil company, initiated an asset sales process to divest some of its interests in eight blocks across its portfolio. Afentra submitted a non-binding expression of interest on 20 September 2021 and on 7 October 2021 was announced as one of six bidders on Block 03/05 and one of two on Block 23.
For the full release, see: https://ir.q4europe.com/Solutions/Afentra/4098/newsArticle.aspx?storyid=15323688
FAR Ltd appoints new CFO
Press Release
Appointment of Chief Financial Officer
FAR Limited (ASX: FAR) advises that Chief Financial Officer Victoria McLellan has resigned and Garth Campbell-Cowan has been appointed as Chief Financial Officer. Ms McLellan will finish with the Company at the end of April following a hand-over period with Mr Campbell-Cowan.
Mr Campbell-Cowan is an experienced executive, working across a variety of ASX listed organisations, including most recently as CFO of gold mining company St Barbara Limited. He has been appointed on a contract basis for the period of transition of the Company.
Chairman Patrick O’Connor commented: “I thank Vicky for her service to FAR over the past five years and wish her well in her future endeavours. I look forward to working with Garth as we focus on farming out our Gambian assets, exploring every opportunity to realise value for shareholders and seeking to reflect the underlying asset value in the FAR share price.”
For the full press release, see here.
FAR Ltd publishes its FY 2021 Annual Report
Press Release
FAR Ltd publishes its Annual Report for the year ended 31 December 2021. Please find the full report here.
TAG Oil publishes its Q3 2022 results
Press Release
TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its third quarter results for the interim period ending December 31, 2021. A copy of TAG Oil’s financial statements and management discussion and analysis for its most recently completed interim period are available on SEDAR (www.sedar.com) and on the Company’s website (https://tagoil.com/investors/financial-reports/).
Highlights over the period include that the Company had C$14.1 million (September 30, 2021: C$15.2 million) in cash and cash equivalents and C$15.8 million (September 30, 2021: C$15.6 million) in working capital. The Company has no debt and continues to manage its costs and allocate the necessary resources towards its business development efforts to maximize value for its shareholders.
TAG Oil is continuing to pursue several acquisition projects in Egypt and explore other strategic opportunities in the Middle East and North Africa. Further information on these efforts will be provided by the Company in due course.
About TAG Oil Ltd.
TAG Oil is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For more infomation, visit TAG Oil’s website: http://www.tagoil.com/
Food Union supports the people of Ukraine with products, financial means and job in the Baltics
Press Release
International ice-cream producer and distributor Food Union group has expressed support to the Ukrainian nation after the invasion of the Russian army in its country. The group is donating food products, providing financial assistance and will provide jobs to Ukrainian refugees in their plants in Latvia and Estonia. The group has stopped exporting and importing to Russia.
Like the whole world, Food Union is following the dramatic events in Ukraine with huge concerns. The group, established in Latvia, currently being one of the leading ice-cream producers in Europe with a direct presence in 6 European countries, hopes for soon end of the warfare and return to negotiations.
“We are especially worried about our Ukrainian colleagues and owners who must look at this injustice in Ukraine through TV screens, while their family members and relatives are in the warfare territories. We believe that any support is valuable right now, therefore we are donating financial resources and products to the Ukrainian nation and will offer jobs to those who have left their homes and will look for asylum in the Baltic states,” said Arturs Cirjevskis, Food Union group head in Europe.
Food Union in Latvia has responded to the call of the Latvian Agricultural Ministry to provide assistance to Ukrainian residents by donating food products at the amount of 35 tons worth around EUR 100,000. Food Union companies in the Baltic states are making financial donations to the Red Cross.
“Ukraine is our significant partner – the second most important export country where we ship products from Latvian plants. We would like to continue export of products to Ukraine when it is possible again. In the meantime, we have contacted our partners in Kiev, Kharkov, Lviv and other cities, and called for all our cream cheese products in their warehouses, i.e. 50 tons, to be distributed to the local population,” said Cirjevskis.
Food Union exports products to more than 30 countries, the largest of which (by the size of exports) are Lithuania, Ukraine, Azerbaijan, Estonia, Norway, Denmark, the UK, Taiwan, Romania, Poland and others. The company exported an insignificant share of 1% of its whole export portfolio to Kaliningrad in Russia, which has been stopped. Purchases from Russia have also been suspended.
Food Union group is European-based manufacturer and distributor of high added value dairy products, confectionery, and frozen products with plants in Latvia, Lithuania, Estonia, Denmark, Norway and Romania. Food Union has a leading position in ice-cream markets in the Baltic states and Denmark, a strong position on Norway and Romania. Riga is the house of Food Union ice-cream competence centre, developing products for the European market. Food Union group’s global manager is Ukrainian-born Andrey Beskhmelnitsky who has obtained his experience in the dairy sector in Russia. The group is financially supported by Hong-Kong based investment company Meridian Capital Limited and one of Asia’s largest private capital companies PAG.
Find out more about Food Union here.
FAR shareholder slates “inadequate” Samuel Terry bid
Australian explorer FAR’s major shareholder has rejected a takeover bid from Samuel Terry Asset Management.
Meridian Capital International Fund, which has a 19.28% stake in FAR, has suggested a distribution of rights to the contingent payment due from Woodside Energy.
Fellow Australian energy company Woodside was working with FAR at the Sangomar development, offshore Senegal. As the pandemic hit, FAR became unable to raise financing and as a result had to sell down its stake.
Woodside paid FAR $126 million in cash. It also committed to a $55mn contingent payment, based on commodity prices and first oil from Sangomar. This should come due in 2023.
FAR has a market cap of A$64.9mn ($46.1mn). Samuel Terry’s offer valued FAR at A$42.7mn ($32.2mn).
Meridian has called for FAR to hold a shareholders meeting on distributing the contingent payment rights.
“FAR is investigating whether it can do so in an appropriate way and will provide an update to shareholders in due course once this investigation is complete,” it said.
FAR released a letter from Meridian on the takeover offer. The bid “is opportunistic and wholly inadequate”, Meridian said.
The investor noted FAR’s cash backing, the contingent payment and its “existing oil and gas interests”.
Meridian suggested that FAR could find a way to trade the contingent payment rights “directly or indirectly on a listed/tradeable exchange”. All FAR’s other assets would remain within FAR, Meridian said.
FAR said it was investigating whether it could take the action.
Meridian Capital Rejects ‘Wholly inadequate’ Samuel Terry’s Bid for FAR Ltd.
Meridian Capital International Fund, a 19.28% shareholder of Africa-focused oil explorer FAR Limited, has rejected the takeover bid for Far launched earlier this week by Samuel Terry Asset Management.
Earlier this week, Samuel Terry Asset Management Pty Ltd as trustee for Samuel Terry Absolute Return Active Fund launched an offer to acquire FAR’s shares at 45c cash per share.
The bidder, which already owns a relevant interest in 4.9% of FAR’s Shares, said the offer price represented a premium of 23.3% relative to the closing price of FAR Shares on ASX on the Last Practicable Date (being 28 January 2022) of A$0.365 per share.
Australia-based FAR has interests in offshore blocks in the Gambia, Guinea Bissau and Australia. The company last year sold its stake in the Sangomar development offshore Senegal to Woodside. FAR had been working to sell its Senegal assets for months, as the company had been in default over the payments of its share of costs for the development of the $4.2 billion Sangomar project, after failing to secure a loan to finance its obligations. After the sale it shifted its focus on the Gambia and Equatorial Guinea assets.
Worth noting, while it did sell its whole Sangomar asset stake, FAR stands to benefit from Sangomar further, once the field is on stream.
Namely, after the sale, under the agreement with Woodside, FAR may receive future payments of up to US$55 million from the time of first oil production from the Sangomar Field which is targeted for 2023. These payments are contingent on future oil price being above US$58 per barrel.
Offer ‘opportunistic and wholly inadequate’
Meridian Capital International Fund (MCIF), which rejected Samuel Terry’s takeover bid for FAR, noted that FAR had said Monday that Samuel Terry offer undervalued FAR’s shares having regard to the company’s cash backing and the right of FAR to receive a US$55m contingent payment from the Sangomar deal, as well as its existing oil and gas interests.
“MCIF rejects the Offer at the Offer Price as being opportunistic and wholly inadequate. In particular, in MCIF’s view, the Offer does not offer shareholders any benefit from the [Sangomar] Contingent Payment.
“MCIF remains committed to its investment in FAR and would suggest to the directors of FAR that they convene a meeting of shareholders to consider a distribution of all rights to the [Sangomar] Contingent Payment to shareholders pro-rata to their existing equity shareholdings in FAR (Rights Distribution), ideally with such rights traded directly or indirectly on a listed/tradeable exchange.
“In MCIF’s view, that course of action or any similar arrangement approved by shareholders would help preserve the value of the [Sangomar]
Contingent Payment for existing shareholders on the relevant record date. All other assets including FAR’s cash and oil and gas interests would remain within FAR.”
Responding to Meridian’s proposal to consider a pro-rata distribution of rights to the contingent payment resulting from the sale of the FAR Senegal asset to Woodside, FAR said it was investigating whether it can do so in an appropriate way and that it would provide an update to shareholders in due course once this investigation is complete.
The Sangomar field, located approximately 100 km south of Dakar, Senegal, is expected to be Senegal’s first offshore oil field in production.
The $4.2 billion Final Investment Decision (FID) on the Sangomar field was taken at the start of 2020. The recoverable hydrocarbon reserves of the Sangomar field total approximately 500 million boe. The field is planned to be brought online in 2023 via a Modec-supplied FPSO named FPSO Léopold Sédar Senghor after Senegal’s first president.
The FPSO will be permanently moored at a water depth of approximately 780 meters. It will be capable of processing 100,000 barrels of crude oil per day, 130 million standard cubic feet of gas per day, 145,000 barrels of water injection per day and will have a minimum storage capacity of 1,300,000 barrels of crude oil.
PetroTal Announcement | Q4 2022 Operations Update
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTC Pink: PTALF) (“PetroTal” or the “Company“) is pleased to provide the following updates:
Key Highlights
- Q4 2021 production averaged 10,147 bopd, constrained by temporary oil delivery disruptions;
- Oil production for 2021 was 8,966 bopd, up 58% from 5,675 bopd for 2020;
- Wells 9H and 8H continue to perform significantly above internal expectations, with average production rates over the past five days of approximately 8,500 bopd and 6,700 bopd, respectively;
- Production at the field is now again averaging approximately 20,000 bopd since January 12, 2022 with export routes, including the Northern Peruvian Pipeline (the “ONP”), fully functional;
- Well 10H drilling operations continue according to plan with estimated completion in early February 2022;
- Q4 2021 oil deliveries for export via Brazil were approximately 300,000 barrels and are expected to increase to approximately 240,000 barrels per month; and,
- December 31, 2021 total cash of $74.4 million, including $29.5 million of restricted cash.
Q4 Production Update
PetroTal’s production averaged 10,147 bopd in Q4 2021, impacted by unplanned and extended downtime of the ONP from social and protest issues at pump stations 1 and 5. October was the only month in the quarter with largely unrestricted production rates, with November and December having only 16 and five producing days, respectively, where all wells were producing fully.
As a result of wells 9H and 8H generating large initial production rates in the quarter, PetroTal was still able to average over 10,000 bopd in Q4 2021 and demonstrate quarter on quarter production growth of 7% despite only producing unconstrained for approximately 57% of the period. Included in Q4 2021, were five days where PetroTal averaged above 20,000 bopd.
Current field production is again at approximately 20,000 bopd, having produced at that rate for the past five days. As announced on December 16, 2021, PetroTal had to significantly constrain production, from that date until January 9, 2022, to an average of 5,006 bopd. This allowed the Company to manage storage capacity and barge availability due to pump station 1 bottlenecks, which have now been alleviated.
Well 10H Update
Drilling of the 10H well progressed according to plan, with its 1,200 meter horizontal section successfully reaching total depth. Well 10H is the longest horizontal well drilled to date in Peru and completion operations are now underway, with the well expected to be completed in early February 2022.
Exports via Brazil Expected to Increase in 2022
During Q4 2021, oil deliveries to Brazil were approximately 300,000 barrels with an all-in differential, marketing and transportation cost of approximately $21/bbl.
In December 2021, PetroTal executed a new sales contract to deliver up to 240,000 barrels per month to Brazil, and is currently working to advance the logistics to further increase export volumes by 50%. Including the current Iquitos Refinery point of sale, the expanded Brazil export route would allow PetroTal to market approximately 13,300 bopd without dependance on the ONP.
Strong Liquidity Management in Q4 2021
PetroTal continues to manage liquidity exceptionally well despite the route to market headwinds. PetroTal ended Q4 2021 with $74.4 million in total cash, of which $29.5 million was restricted, including $20 million dedicated to accretive acquisitions. Ending Q4 2021 cash was higher compared to internal forecast as a result of receiving a $15.8 million revenue true up payment for exported oil at Bayovar. Accounts receivable and accounts payable at year-end were approximately $0.5 and $54.0 million (11% due after Q1 2022), respectively. Accounts receivable balances were substantially lower in Q4 2021 due to December 2021 ONP sales disruptions caused by nearby protests.
CPF-2 Commissioned
PetroTal is pleased to announce that CPF-2 has been fully commissioned and is operational, thereby allowing field production capacity of 24,000 bopd, water disposal capacity of 100,000 barrels of water per day and oil storage of 90,000 barrels at the field.
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented
“We are excited to start the new year with record production of 20,000 bopd, a solid base for ongoing growth. PetroTal will continue to manage our business to maximize cash flow and support stable operations for shareholders while always placing safety above all else.
“The Company is very supportive of community efforts and the active dialogue engagement that led to the reopening of pump stations 1 and 5. Our team has been working hard to find creative sales business solutions so 2022 can be a record year for the Company from cash flow and production perspectives.”
ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100% working interest in Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the largest crude oil producer in Peru. The Company’s management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For the full release, visit: http://www.petrotal-corp.com/
PetroTal Announces Q1 2022 Financial and Operating Results
Press Release
PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (OTCQX: PTALF) (“PetroTal” or the “Company“) is pleased to announce its financial and operating results for the three months ended March 31, 2022 (“Q1 2022”).
Selected financial, and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated financial statements (“Financial Statements”), and management’s discussion and analysis (“MD&A”) for the three months ended March 31, 2022, which are available on SEDAR at www.sedar.com and on the Company’s website at https://petrotal-corp.com/. All amounts herein are in United States dollars (“USD”) unless otherwise stated.
Q1 2022 Highlights
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Achieved record quarterly production of 11,746 barrels of oil per day (“bopd”) and record quarterly sales of 15,518 bopd, up 60% and 80%, respectively, from Q1 2021, representing the Company’s sixth straight quarter of growth, despite production being either constrained or completely shut down during six weeks of the quarter due to social protests;
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Based on the 67 production days in the quarter, average production was 15,778 bopd;
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Completed well 10H on January 30, 2022, Peru’s longest ever horizontal well, with an all-in cost of $11.5 million that averaged 10,500 bopd over its first ten days, accumulating 251,320 barrels in the month of February 2022, delivering a pay back of four weeks;
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Achieved a new daily Company production record of 21,000 bopd twice in the month of February 2022;
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Received Ministry approval for the Company’s central processing facility (“CPF-2”) to operate Bretana to its maximum capacity range of 24,000 to 26,000 bopd allowing the Company significant running room for development;
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Generated record net operating income (“NOI”) and EBITDA(a) of $64.2 million and $58.7 million, respectively, more than tripling the equivalent amounts from Q1 2021;
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Generated record free cash flow(a) of $41.2 million before changes in non cash working capital and debt service, providing the Company with a liquidity buffer which allowed it to navigate the downtime experienced in March due to social unrest and repay $20 million of its long term debt, on April 1, 2022;
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Invested $17.5 million in capital expenditures, under budget by $18.5 million (50%) due to drilling delays from the March social protests. Of the $17.5 million invested, approximately 65% was related to drilling activities and the remainder mostly on infrastructure projects; and,
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On February 22, 2022, PetroTal announced a $120 million fully funded capital program that could potentially generate up to $230 million of free cash flow in 2022, allowing the Company the optionality to redeem the remaining $80 million in bonds early and implement its strategy of returning capital to shareholders in Q4 2022 or Q1 2023, subject to Board approval and economic viability.
Selected Financial and Operational Highlights
Three Months Ended | ||||||||||
(in thousands USD) | Mar 31, 2022 | Mar 31, 2021 | Dec 31, 2021 | |||||||
Financial | ||||||||||
Crude oil revenues | 92,752 | 32,356 | 39,243 | |||||||
Royalties | (6,373) | (1,748) | (2,304) | |||||||
Net operating income (1) | 64,194 | 19,969 | 25,726 | |||||||
Commodity price derivative (gain)/loss | (21,014) | (22,512) | 5,622 | |||||||
Net income | 64,511 | 30,785 | 6,843 | |||||||
Diluted net income (US$/share) | 0.07 | 0.04 | 0.01 | |||||||
Capital expenditures | 17,529 | 7,113 | 26,601 | |||||||
Operating | ||||||||||
Average production (bopd)(3) | 11,746 | 7,331 | 10,147 | |||||||
Average sales (bopd) | 15,518 | 8,578 | 7,242 | |||||||
Average Brent price ($/bbl) | 97.49 | 61.06 | 79.79 | |||||||
Contracted sales price, gross ($/bbl) | 88.02 | 58.88 | 77.46 | |||||||
Netback ($/bbl)(2) | 45.96 | 25.87 | 38.61 | |||||||
Funds flow provided by operations(3) | 5,743 | 4,467 | 34,714 | |||||||
Balance sheet | ||||||||||
Cash and restricted cash | 52,886 | 75,824 | 74,459 | |||||||
Working capital | 54,226 | 68,213 | 47,319 | |||||||
Total assets | 455,370 | 342,583 | 398,288 | |||||||
Current liabilities | 100,904 | 69,348 | 84,767 | |||||||
Equity | 270,855 | 168,405 | 204,257 |
- Net operating income obtained from revenues less royalties, operating expenses, and direct transportation.
- Netback per barrel (“bbl”) and funds flow provided by operations do not have standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures for other entities. See “Selected Financial Measures” section.
- Average production in Q1 2022 based on the 67 days of full or partial production was 15,778 bopd.
Q1 2022 Financial Results
Record net revenue. Delivered net revenue after differentials of $92.7 million ($66.41/bbl) compared to Q1 2021 of $32.4 million ($41.91/bbl) and Q4 2021 of $39.2 million ($58.90/bbl).
Record net operating income. Generated record NOI and EBITDA(a) of $64.2 million ($45.96/bbl) and $58.7 million ($42.05/bbl), respectively, as compared to $20.0 million ($25.87/bbl) and $16.4 million ($21.16/bbl), respectively, in Q1 2021 and $25.8 million ($38.61/bbl) and $21.8 million ($32.66/bbl) in Q4 2021.
Tactical Q1 2022 capital spend. Spent $17.5 million in capital expenditures focused on drilling and completing well 10H and advancing a number of small infrastructure projects. This was approximately half of what was budgeted for Q1 2022 due to deferral of drilling activity into Q2 2022 resulting from the social protest activity in March 2022.
Positive Q1 2022 free cash flow. Generated net positive free cash flow(a) before changes in non cash working capital and debt service of $41.2 million, which allowed the Company sufficient liquidity to execute its phase one debt reduction strategy and retire 20% of its long term debt on April 1, 2022.
Stable Q1 2022 lifting costs. Total lifting costs of $10.1 million ($7.20/bbl) were incurred in the quarter, in line on a per barrel basis with $5.5 million ($7.17/bbl) in Q1 2021, which included some elevated and one time COVID-19 mitigation costs, and slightly down from $5.1 million ($7.60/bbl) in Q4 2021.
Variable costs in line with expectations. Diluent and barging costs were $12.1 million ($8.68/bbl) in the quarter compared to $5.1 million ($6.61/bbl) in Q1 2021, driven by higher barging standby, diluent and diesel costs, and down from $6.15 million ($9.23/bbl) in Q4 2021. On a percentage basis, the Company’s Q1 2022 contracted Brent price has increased approximately 50% from Q1 2021 with core variable costs only up 31% from Q1 2021, on a per barrel basis.
G&A per barrel reductions. Q1 2022 G&A was $4.7 million ($3.38/bbl) compared to $3.6 million ($4.70/bbl) in Q1 2021 and $4.0 million ($5.95/bbl) in Q4 2021 representing a 28% and 43% reduction on a per barrel basis compared to Q1 2021 and Q4 2021, driven by higher sales.
Record Q1 2022 net income. Q1 2022 net income was a record $64.5 million surpassing the entire 2021 yearly amount, doubling the Q1 2021 level of $30.8 million and significantly exceeding $6.8 million in Q4 2021. This was driven by further increases in the derivative value of the Company’s crude in the ONP, and stable DD&A expense from an efficient cumulative investment in the Bretana project.
Net debt free. Q1 2022 net debt(cash) was ($9.2) million representing a net cash position as at March 31, 2022 as defined internally by the Company and not for bond covenant purposes.
Operation and Financial Highlights Subsequent to March 31, 2021
Social protest conclusion. The Company’s loading dock was re-opened on April 8, 2022 and PetroTal was producing two days later after freeing space in the oil storage tanks, averaging 17,411 bopd from April 9 until April 30, 2022 with priority sales going to Brazil exports and the Iquitos refinery. Exports through Brazil restarted on April 12, 2022 and totaled 355,312 barrels of oil during the month of April.
Robust production levels resumed. Current production from May 1, 2022 to May 23, 2022, has been approximately 15,724 bopd. Even with sales into the Northern Peruvian Pipeline (“ONP”) curtailed due to repairs by Petroperu, the Company’s production has been largely unconstrained due to upsized offtake options for Brazil exports and general supply to the Iquitos refinery.
Brazil shipments upsized and optimized. PetroTal is pleased to announce that it has secured Brazilian export sizes of nearly 500,000 barrels per month. In addition, with Iquitos now being able to accept 60,000 barrels per month, the Company can sell the equivalent of 18,000 bopd without requiring access to the ONP.
Diluent free Brazilian route. The Company has successfully completed a pilot Brazilian shipment without diluent and will be able to export to Brazil diluent free going forwards, saving the Company over $30 million per year in diluent costs and improving net operating income by approximately $10 million per year when considering the net impact of reduced revenue from diluent in sales.
Commenced drilling on well 11H. On May 7, 2022, PetroTal commenced drilling well 11H which has an approximate cost of $13.5 million, a total depth of around 4,300 meters, and includes a synthetic mud system. The estimated completion date will be in late June 2022 with flush production expected to impact July production levels.
Social trust working table established. PetroTal facilitated the formation of a working group consisting of various community and government leaders with a mandate of discussing and prioritizing community needs for the Puinahua district and to properly establish the proposed 2.5% social trust. The working table meets regularly and has been making progress on various administrative components related to its mandate of facilitating responsible dialogue to prioritize development issues in the Puinahua region.
ONP down for maintenance. As previously announced on April 28, 2022, the ONP remains shut down for maintenance to repair significant erosion damage. The estimated completion date is late September with operations estimated to resume in Q4 2022, thus deferring the next Bayovar oil delivery with associated true up revenue until approximately October 2022.
Liquidity remains robust. Total cash at March 31, 2022 was $52.9 million with $19.0 million unrestricted compared to $75.0 million at year end of which $45.0 million was unrestricted. Accounts receivable were $54.5 million from Q1 2022 sales, and lower payables of $41.3 million, due to field downtime in March from the social protests.
Deleveraging underway. Bondholders accepted PetroTal’s call provision notice regarding repayment of the $20 million in bonds dedicated to M&A activities. PetroTal made the payment on April 1, 2022 and now has $80 million in bonds remaining with no required amortization payments in 2022. The payment of $20 million was made from restricted cash, which on a proforma basis at March 31, 2022, represents $32.9 million of total cash with $19.0 million being unrestricted.
Guidance Revisions for 2022
Given that the social protest impact during the first four months of the year have already surpassed the 13% downtime assumed on our 2022 production guidance and have also delayed the Company’s 2022 drilling schedule, we have adjusted our 2022 guidance, now assuming a 5% social unrest impact for the remainder of the year plus the normal 5% technical downtime. Below is a summary of adjusted guidance for the year:
Adjusted Guidance | Q1 (actual) | Q2 | Q3 | Q4 | 2022 |
Oil wells completed | 1 (10H) | 1 (11H) | 1 (12H) | 1 (13H) | 4 |
Average Production (bopd) | 11,746 | ~13,500 | ~16,600 | ~20,000 | ~15,500 |
CAPEX (millions) | $18 | $29 | $34 | $30 | $111 |
In USD millions | Original Budget | Adjusted Budget |
Contracted Brent (USD/bbl) | $88 | $102 |
Average Production (bopd) | 18,250 (13% downtime) | 15,500 (22% downtime) |
Net operating income | $335 | $351 |
G&A | ($22) | ($22) |
Net derivative settlements(1) | $37 | $13 |
Adjusted EBITDA1,a | $350 | $342 |
CAPEX | ($120) | ($111) |
Free cash flow | $230 | $231 |
(1) Approximately $34 million in anticipated 2022 true-up revenue has now been deferred into 2023 as a result of the ONP maintenance.
Adjusted Guidance Summary
The cash flow impact of the 2,750 bopd reduction to the production guidance is more than offset by a higher Brent future price strip, which has maintained EBITDA and increased free cash flow estimates.
March’s downtime from the social protests contributed approximately 1,140 bopd to the production guidance reduction, with the remaining 1,620 bopd of the decrease related to the delayed drilling impact for the remainder of the year’s drilling schedule. The Q2-Q4 2022 drilling schedule now anticipates well 14H being drilled in late 2022 with completion deferred into early 2023. The Company expects to surpass production of 20,000 bopd, and will require use of the ONP route by Q4 2022, which coincides with its estimated maintenance completion.
The 2022 capital program has been reduced by approximately $9 million comprised of infrastructure project deferrals into 2023.
Updated Corporate Presentation and investor webcast
PetroTal is excited to announce it will be hosting an extended virtual investor meeting on May 26, 2022 at 9:00 am CT, following release of the Q1 2022 results. The objective of management will be to provide in depth information regarding certain aspects of the Bretana asset and to communicate the Company’s short and long term strategy. The Company has also provided an updated corporate presentation with the Q1 2022 results, on its website.
Link to PetroTal investor morning webcast
https://stream.brrmedia.co.uk/broadcast/6274f7b58eb4f178d1ef9592
Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, commented:
“PetroTal was able to pivot through social downtime challenges extremely well while still showing quarter over quarter production growth and a revised 2022 budget that shareholders should be very excited about considering the drilling delays encountered in March. The social trust working table has been formed, met initially on May 3, 2022 and ongoing meetings will continue to advance the formal policy and procedure formation for the social trust. The positive response for this initiative has been overwhelming and we are excited about formalizing additional items as the year progresses.”
ABOUT PETROTAL
PetroTal is a publicly traded, tri quoted (TSXV: TAL) (AIM: PTAL) and (OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is its 100% working interest in Bretana oil field in Peru’s Block 95 where oil production was initiated in June 2018. In early 2020, PetroTal became the largest crude oil producer in Peru. The Company’s management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.
For the full release, visit: http://www.petrotal-corp.com/
PetroTal set to boost Brazilian exports – Petroleum Economist
Petroleum Economist – Simon Ferrie
Peru-focused independent Petrotal plans to ramp up its crude exports to Brazil this year, after facing problems accessing Pacific coast export terminals in 2021. The operator expects to increase exports to Brazil to c.240,000bl per month (roughly 8,000bl/d) this year, after securing a contract last December for up to that same amount. And Petrotal is looking at potential ways to increase export volumes by a further 50pc, saying an expanded Brazilian route would allow 13,300bl/d, without having to rely upon the Northern Peruvian Pipeline (ONP) which was frequently disrupted in 2021.
Read the article here.
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Food Union invests EUR 1 million in new and environmentally friendly car park, reducing CO2 emissions – The Baltic Times
The leading dairy processing company Food Union continues to invest in Latvia in a new and environmentally-friendly car park in order to reduce CO 2 emissions. Investing EUR 1 million, the company has purchased 10 new trucks with the newest Euro 6 engines and two coolers that ensure transportation of products in a multi-temperature regime. As a result, in two years a total of EUR 2.4 million have been invested in the car park, renovation of which started in 2019 with 14 new vehicles worth about EUR 1.4 million. At present, 50% of Food Union car park or 24 out of 47 vehicles are not older than two years.
See the full article here.
See more about Food Union here.
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TAG Oil announces its Q2 results
Press Release
TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its second quarter results for the interim period ending September 30, 2021. A copy of TAG Oil’s financial statements and management discussion and analysis for its most recently completed interim period are available on SEDAR (www.sedar.com) and on the Company’s website (https://tagoil.com/investors/financial-reports/).
Highlights over the period include that the Company had C$15.2 million (June 30, 2021: C$15.6 million) in cash and cash equivalents and C$15.6 million (June 30, 2021: C$16.3 million) in working capital. The Company has no debt and continues to manage its costs and allocate the necessary resources towards its business development efforts to maximize value for its shareholders.
TAG Oil is continuing to pursue several acquisition projects in Egypt and explore other strategic opportunities in the Middle East and North Africa. Further information on these efforts will be provided by the Company in due course.
The Company also reports that its upcoming annual general meeting of its shareholders (the “Meeting”) will be virtually held on December 2, 2021, at 10:00 a.m. (PST). For further information on the Meeting, a copy of the Meeting materials are available on SEDAR (www.sedar.com) and on TAG Oil’s website (https://tagoil.com/investors/financial-reports/).
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
See the full press release here.
See more on TAG Oil here.
Diving and sailing around Raja Ampat, Indonesia: One of the last few pristine marine reserves
Christopher Silvester enjoys a diving adventure with a twist off the Indonesian coast in Raja Ampat
Sean Galleymore is a man on a mission. This South African diving expert is a visionary who wishes to transform the yacht chartering business worldwide. He hates the wastefulness of megayachts.
There are too many ‘backpacker’ deckhands, too many accidents in yachting. His passions are the extraordinary variety and fecundity of marine life and the cadet programme he has created for the purpose of training crew to a superlative level.
‘They can’t be specialists,’ he says. ‘They have to know everything.’
West Papua is the base for Meridian Adventure SAIL, a fleet of eco-friendly, 19.9-metre catamarans, which offer luxury accommodation for groups of travellers seeking a unique diving experience.
I am here with a group of travel writers and yacht brokers, as well as a Hong Kong billionaire and his wife. ‘We are not a charter company, we are not a dive company, we are an adventure club,’ Galleymore explains.
Guests can book a catamaran or up to all six vessels for a customised diving and sailing adventure around Raja Ampat, one of the last few pristine marine reserves – perfect for an entrepreneur’s corporate jolly or, indeed, his multi-generational family holiday. ‘We’re not seeking cabin-based bookings,’ says Galleymore.
‘We prefer families who’ve already had megayacht experiences. Our fleet gives autonomy, it’s independently anchored, and it creates a village effect.’
To reach Raja Ampat, an archipelago of four large islands and hundreds of tower karst islets, you must cross the Dampier Strait, a rough expanse of ocean, in a fast tender (which means getting wet) or a closed-cabin boat, a journey which takes 90 minutes. You don’t need to have a PADI certificate or, indeed, any significant diving experience.
There are highly skilled divers on hand to teach you everything you need to know, and you can take your first dive with oxygen after about an hour’s training.
However for those who prefer to snorkel there is plenty to see, and a couple of the cadets will lead you on guided outings while the hardcore divers head down beneath you ur first dive is in the Dampier Strait.
We spot a pilot whale rising briefly to the surface a few hundred yards away. While I am snorkelling, a turtle passes beneath me. Our second dive is at Yeban Shallows. Galleymore describes this as a pimple rising out of the sea with a long sand bank connecting it to other rocky outcrops.
There I see a black tip shark patrolling the reef below. Its presence doesn’t alarm me, as I know it isn’t dangerous to humans. At Pef, we go on a paddleboard safari, following narrow channels through the mangroves, skimming across corals while small fish jump up onto our paddleboards.
On another occasion we embark on a night-time paddleboard safari in the darkness, the only illumination being coloured LED lights underneath our paddleboards. We make our way through a low tunnel cave, which leads to an inlet, and we form ourselves into the circular shape of a flower head, with each board serving as a petal. Galleymore instructs us to lie back in silence and gaze up at the stars as he switches off all our LEDs with a single remote switch.
It is a moment of sublime rapture, an opportunity to fulfil his oft-repeated mantra about presence of mind. At an islet, we snorkel and swim through a gap in the reef to reach a beach where we gather in a circle for an aerial photo by drone.
At Waigeo island, we explore one of the conical tower karsts by trekking to its summit. Then there is swimming with sharks, and not in the metaphorical sense. We arrive at an island village where a ranger proceeds to feed a school of black tip sharks in the shallows while we swim among them.
Aside from wanting to improve the available pool of superyacht crews, Meridian’s raison d’être is its slow-travel mandate. That means craft with low emissions and detoxification of waste. Local villages are important.
‘We are in their back garden, at their request,’ says Galleymore. ‘People protect what they love. I believe in the power of the ocean to cleanse and challenge, to revitalise.’
The biggest threat to the marine reserve is the vast number of unregulated phinisi sailing junks, known as ‘liveaboards’. The phinisis have deficient treatment systems, anchor near reefs and dump their waste on to reef systems. Nor does the local economy benefit from their presence.
Their crews are not locals, they don’t buy their supplies locally, and they don’t spend money in Raja Ampat. Meridian, on the other hand, assists the villages when it comes to electricity generation, water conservation and waste management.
At Friwen, Meridian supports the local village with homestays (whereby their guests can stay the night in a village dwelling and eat village food), and it pays for its guests to be on the beach, where they can drink coconut juice and use Seabobs or electric hydrofoil surfboards.
Indeed, Meridian is training numerous homestays to become hotels on their own terms, providing chefs who teach them how to enhance food. The Meridian DIVE resort at Waisai, where academy cadets do their eight days’ PADI training, is a five-star facility, with the best compressors in the world.
‘Private yachts should only anchor in specific places,’ says Galleymore. ‘Meridian employs Indonesians, educates them, but crucially it learns from their local knowledge. Our crown jewels are the diving experiences. We’ve even converted a fishing vessel into a cargo carrier.
‘The superyacht industry is owned by 1,000 people who run the world,’ he adds, therefore to give them self-actualisation experiences while educating them about marine conservation is ‘a way of shaping minds and lives’.
And that brings me back to Galleymore’s favourite phrase once again. In all things, cultivate presence of mind. It’s good for the planet as well as good for the soul.
Meridian Adventure SAIL’s all-inclusive, semi-private Raja Ampat voyage starts at $8,250 per day, per vessel (6-8 guests; one week minimum). Group expeditions with six vessels start at $49,500 per day, with up to 21 cabins available. sail.meridianadventures.com Qatar Airways offers flights from London to Jakarta from £533 return. (From Jakarta, Raja Ampat can be reached via a domestic flight to Sorong.) qatarairways.com
Read the full article here
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Meridian Adventure Sail is a private members club for voyages at sea – GLOBETRENDER
Meridian Adventure Sail is a ‘private explorers’ club that arranges ‘leave no trace adventures’ to far-flung corners of the world. Olivia Palamountain reports
Meridian Adventure Sail offers exotic catamaran adventures in unexplored climes combined with all the luxury services and amenities one would expect from a premium sailing trip.
See the full article here.
See more about Meridian Adventure Sail here.
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Why your next adventure should be a low-impact sailing trip – Forbes
Nicole Trilivas – Forbes
Though we can’t say for certain what travel will look like once restrictions are lifted, responsible travel is one industry trend that we hope will resurge as a key priority for many travelers.
With the one-two punch of sustainability and slow travel, sailing allows for full immersion with the natural world without leaving a heavy footprint behind. However, not all boats—or tour operators—are created equal. No one knows this better than the team behind the newly introduced Meridian Adventure SAIL, a collection of six high-end, eco-friendly catamarans currently based in the Indonesian marine paradise of Raja Ampat.
A Look At Meridian Adventure SAIL:
With a slow-travel mandate and environmental responsibility at heart, Meridian Adventure SAIL operates as a members club to ensure that only environmentally focused and adventure-loving travelers attend their trips. Once accepted into the club, likeminded members are able to book a catamaran (or up to six catamarans) for a custom-crafted expedition through the world’s most pristine paradises, such as Raja Ampat.
Slowly garnering a reputation as one of the most staggeringly beautiful diving locations, Raja Ampat is a biological hotspot with a dizzying amount of marine diversity, which is all the more reason that it should be explored via a sustainable outfit like Meridian Adventure SAIL.
See the full article here.
See more about Meridian Adventure Sail here.