Maurel & Prom – H1 2012 Consolidated Sales €226m

PARIS, August 7, 2012 /PRNewswire/ --

H1 2012 Production data for Gabon and Colombia.

 
                                    Q1 2012  Q2 2012  H1 2012  H1 2011
 
    Production at 100%    bopd      17,493   17,982   17,738   18,016
    Gabon                           16,575   16,407   16,491   18,016
    Colombia                          918     1,575    1,247      -
    M&P share             bopd      14,587   14,765   14,677   15,359
    Gabon                           14,128   13,978   14,053   15,359
    Colombia                          459      788      624       -
    Entitlements          bopd      13,780   13,946   13,863   14,510
    Gabon                           13,348   13,206   13,277   14,510
    Colombia                          432      741      586       -
    Production sold       bopd      19,785   10,006   14,896   14,266
 
    Average selling price US$/bbl
    Gabon                            118.9    101.5    113.2    109.8
    Colombia                         104.7    93.3     97.5       -
 

The Sabanero field began producing on 17 December 2011, and by the end of June 2012 output had stabilised at approximately 1,500 bopd (at 100%). This production level is temporarily constrained by existing processing and reinjection capacity of the water produced. Note that a production permit request for the Sabanero field has been filed with the ANH (National Hydrocarbon Agency). The permit is expected to be issued in the first quarter of 2013.

In Gabon, the steady rise in production after initiating the water injection programme was interrupted by an incident in late January on platform 100 at the Omoc-Nord field. The impact of this incident will be felt until the end of the third quarter of 2012, the exact date depending on progress with regards to connecting wells to the new platforms.

The Group reaffirms its objective to achieve output (at 100%) of approximately 24,500 bopd by the end of 2012 thanks to the connection of four additional platforms in September, November and December 2012.

H1 2012 Sales: €226m

 
    in EUR M           Q1 2012 Q2 2012  H1 2012  H1 2011*    Chg
 
         Exchange rate  1.311   1.284    1.297    1.404      -8%
 
                 Gabon  137.3   90.0     227.3    201.9      13%
              Colombia   3.1     4.9      8.0      0.0
                 Congo   0.0     0.0      0.0      0.2
              Tanzania   0.2     0.2      0.4      0.4
        Oil production  140.6   95.1     235.6    202.5      16%
      Impact of hedges  -7.9    -1.9     -9.8     -19.8     -50%
 
    Consolidated sales  132.7   93.1     225.9    182.7      24%
 

*S1 2011 scope restated for Caroil and Nigeria

The Group's consolidated sales for the half year came to €225.9 million, up 24% on the same period in 2011.

This increase was mainly due to higher oil prices (average sale price of US$113.2/bbl in Gabon versus US$109.8/bbl for the first half of 2011) and incorporating for the first time the oil sales from the Sabanero field in Colombia.

The Group's consolidated sales during the half year benefitted from a favourable movement in the US$/euro exchange rate, which rose to US$1.297 per €1 in the first half of 2012 versus US$1.404 per €1 in the first half of 2011.

Oil hedges put in place by the Group, representing 3,000 bopd sold at $97.3/bbl in the second quarter of 2012, had a limited adverse impact during the period due to the reduction in hedged volumes and the drop in the reference price in Gabon, namely Brent. The average price of Brent in the first quarter of 2012 was US$118.5 versus US$108.4 in the second quarter of 2012, which is an average of US$113.4 for the half year 2012.

GLOSSARY

Gross production: production at 100%.

Working interest production: gross production - partner's share.

Mining royalties in Gabon: royalties are paid in foreign currencies in Gabon.

Entitlements: working interest production - royalties paid in-kind - in-kind State share of profit oil + corporation tax if the State's profit oil is paid in kind.

Production sold: entitlements -/+ stock.

Sale price: in Gabon, prices are set by the State based on oil quality and benchmark prices. The mutually‐agreed costs to achieve commercial viability must then be deducted from these prices.

Sales: entitlements x sale price. Sales are recognised on the production extraction date.

Taxes and duties: profit oil due to the Gabonese State is paid in foreign currencies for the Banio field and in kind for the Onal, Omko, Omgw and Ombg fields. Corporation tax in Gabon is included in the State profit oil and systematically recognised as revenue.

Q2 sales: sales for the second quarter are calculated by deducting sales for the first quarter from the figure for half‐year sales.

Q3 sales: sales for the third quarter are calculated by deducting sales for the first half of the year from the accrued sales for the first nine months.

Q4 sales: sales for the fourth quarter are calculated by deducting sales for the first nine months of the year from the total sales for the full 12 months.

For more information: http://www.maureletprom.fr

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

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