Source: Matra Petroleum AB
February 21, 2018 02:30 ET
Fourth quarter ended 31 December 2017 (Fourth quarter ended 31 December 2016)
Twelve months ended 31 December 2017 (Twelve months ended 31 December 2016)
|Fourth quarter 2017||Fourth quarter 2016||Twelve months 2017||Twelve months 2016|
|Gross crude oil production, bbl||30,363||30,109||127,080||101,977|
|Gross gas and natural liquids production, mcf||173,536||153,370||707,543||626,710|
|Net crude oil production, bbl||24,325||24,466||103,714||82,614|
|Net gas and natural liquids production, mcf||125,896||109,044||523,251||452,135|
|Average selling price oil, USD/bbl||51.86||46.40||47.53||41.10|
|Average selling price gas USD/mcf||8.14||5.38||6.78||4.46|
|Operating result, TUSD||-392||-82||-560||-3,730|
|Result for the period, TUSD||-2,110||-1,238||-7,126||-9,038|
|Earnings per share, USD||-0.05||-0.04||-0.18||-0.27|
We can now summarize Matra Petroleum AB's first financial year following the listing on Nasdaq First North in Stockholm last spring.
In 2017, Matra made meaningful progress and recorded significant growth and financial improvements:
In, 2017 performance was driven by successful drilling, production optimization and continuous cost and efficiency improvements. Revenues, EBITDA and cash flow were also supported by improved oil and gas prices. Increased capital expenditures, resulting from higher drilling activity were primarily funded by equity issues early in the year and working capital sources, resulting in a net cash decrease.
10 new production wells and 1 salt water disposal well were successfully drilled and completed and are outperforming expectations as drilling and completion techniques keep improving. The results from the new wells have been incorporated into Matra's updated development plan and independent reserve report to reflect higher expected financial returns from new wells to be drilled going forward. Matra has identified more than 400 locations for drilling new wells to add production towards the long term production target of 6,000 boe per day.
In the fourth quarter 2017, oil and gas production increased compared to same quarter last year but was lower than in the preceding quarter, primarily due to unusually low temperatures in northern Texas in December that affected flow lines and compressors. Higher realized oil and gas prices contributed to revenues increasing by 16% compared to the fourth quarter last year while remaining at the same level as revenues in the third quarter 2017.
Quarterly EBITDA further improved from the third quarter 2017 and the fourth quarter 2016. Net income for the quarter was negatively affected by an unrealised loss of TUSD 453 on hedge positions, based on higher yearend oil and gas prices not yet reflected in oil and gas sales. Hedge positions were related to future production for which actual price realizations will be recorded in 2018.
Higher oil and gas prices support revenue, cash flow and earnings going into 2018. Matra's asset base offers significant development opportunities and we remain committed further optimize drilling and production. Our objective is to execute an extensive workover program and launch this years' drilling program in the second quarter to provide for further growth and financial improvements.
21 February 2018
Chief Executive Officer
This report has not been subject to review by the auditors of the Company.
For more information, please contact:
Maxim Barskiy, CEO, Matra Petroleum AB (publ)
Phone number: +46 8 611 49 95
Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550
Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 115 22 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: email@example.com
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 08:30 CET on 21 February 2018.
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 130 leases, covering an area of 38,140 net acres in the Panhandle region in Texas. Matra's proved oil and gas reserves amount to 21.0 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).