Source: Matra Petroleum AB
November 23, 2017 01:45 ET
Third quarter ended 30 September 2017 (Third quarter ended 30 September 2016)
Nine months ended 30 September 2017 (Nine months ended 30 September 2016)
|Third quarter 2017||Third quarter 2016||Nine months 2017||Nine months 2016|
|Gross crude oil production, bbl||33,745||30,109||96,717||71,840|
|Gross gas and natural liquids production, mcf||190,869||194,063||534,007||473,340|
|Average daily gross production, boepd||713||679||680||550|
|Net crude oil production, bbl||27,782||24,587||79,389||58,148|
|Net gas and natural liquids production, mcf||141,181||140,580||397,355||343,091|
|Average daily net production, boepd||558||522||533||421|
|Selling price oil, USD/bbl||44.89||44.46||46.18||38.94|
|Selling price gas USD/mcf||6.91||5.17||6.35||4.16|
|Result for the period||-1,795||-2,177||-5,016||-7,799|
|Earnings per share, USD||-0.05||-0.07||-0.13||-0.24|
In the third quarter 2017, Matra's operating and financial performance continued to improve.
In 2017, 10 oil and gas wells have been drilled and successfully put on production. Approximately 75 old wells have been shut in. The performance of new wells is continuously improving as we keep improving drilling and completion techniques. Four of the new wells were completed and put on production in the third quarter, contributing to production increasing 7% quarter on quarter. For the nine month period, oil and gas production increased 24%.
Driven by higher production and improved oil and gas prices, significant revenue growth was recorded compared to the third quarter and nine month period last year. Quarter on quarter, realized gas prices increased by 24% while realized oil prices were essentially flat. Third quarter revenues were negatively affected by a non-cash revaluation of hedging positions. After the end of the quarter, oil and gas prices have further improved, which supports revenues.
Further efficiency improvements were achieved in the third quarter as Matra continued to rationalize production and costs. Production costs per boe decreased by 19% quarter on quarter and came down to USD 15.91 per boe.
Increased revenues, net of revaluation of hedging positions, and cost efficiencies resulted in improvements in EBITDA, operating cash flow (before changes in working capital) and net result quarter on quarter and year on year.
In the third quarter and first nine months 2017, investments in oil and gas properties increased as a result of increased drilling activity. Net cash decreased as these investments were financed by equity issues early in the year and cash.
Supported by encouraging drilling results and higher oil and gas prices, we are in the process of updating Matra's reserves and development plan. We are upgrading the expected returns from investments in new wells and are in the process of securing resources for an expanded capital expenditures program in 2018. In short, our ambition is to drill more wells in the coming year to further improve financial performance by adding profitable oil and gas production in line with the long term target of 6,000 boe per day. Beyond that, we have identified additional opportunities to further expand Matra's production and reserve base through M&A.
23 November 2017
Chief Executive Officer
For more information, please contact:
Maxim Barskiy, CEO, Matra Petroleum AB (publ)
Phone number: +46 8 611 49 95
This information is information that Matra Petroleum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 07:45 CET on 23 November 2017.
Matra Petroleum AB (publ) is a Swedish independent oil and gas exploration and production company operating in the United States, where the company owns and operates 136 leases, covering an area of 38,800 net acres in the Panhandle region in Texas. Matra's reserves amount to 22.9 million barrels of oil equivalent. Matra Petroleum 's shares are traded on NASDAQ First North in Sweden under the symbol MATRA. Mangold Fondkommission AB is Certified Adviser (www.mangold.se).
Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 115 22 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: firstname.lastname@example.org