Matra Petroleum AB: Third quarter and nine months ended 30 September 2018

Source: Matra Petroleum AB
November 23, 2018 02:30 ET


Third quarter ended 30 September 2018 (Third quarter ended 30 September 2017)


  • Revenue of TUSD 3,239 (TUSD 2,363), up 37%
  • Gross average oil and gas production increased to 823 boepd (713 boepd)
  • EBITDA of TUSD 492 (TUSD 436)
  • Net result for the period of TUSD -1,735 (TUSD -1,795)
  • Operational and Net results were affected by hedging losses of TUSD -40 (-162)
  • Earnings per share (basic and diluted) amounted to -0.04 USD per share (USD -0.05)


Nine months ended 30 September 2018 (Nine months ended 30 September 2017)


  • Revenue of TUSD 8,203 (TUSD 6,940), up 18%
  • Gross average oil and gas production amounted to 719 boepd (680 boepd), out of which 696 boepd were included in operational results
  • EBITDA of TUSD 368 (TUSD 545)
  • Net result for the period of TUSD -6,607 (TUSD -5,016)
  • Operational and Net results were affected by hedging losses of TUSD -768 (-361)
  • Earnings per share (basic and diluted) amounted to -0.16 USD per share (USD -0.13)
  • MUSD 6.2 acquisition of 4 million boe in proven reserves completed and funded by a directed share issue and debt




  Third quarter 2018 Third quarter 2017 Nine months 2018 Nine months 2017 Twelve months 2017
Operational results          
Gross crude oil production, bbl 38,947 33,745 99,588 96,717 127,080
Gross gas and natural liquids production, mcf 220,564 190,869 543,155 534,007 707,543
Total, boepd 823 713 696 680 671
Net crude oil production, bbl 31,998 27,782 81,778 79,389 103,714
Net gas and natural liquids production, mcf 167,169 141,181 411,123 397,355 523,251
Total, boepd 651 558 551 533 523
Average selling price oil, USD/bbl 66.16 44.89 65.16 46.18 47.53
Average selling price gas USD/mcf 6.82 6.91 6.78 6.35 6.78
Financial results          
Revenue, TUSD 3,239 2,363 8,203 6,940 9,234
EBITDA 492 436 368 545 1,400
Operating result 395 -77 -691 -169 -560
Result for the period -1,735 -1,795 -6,607 -5,016 -7,126
Earnings per share (basic and diluted), USD -0.04 -0.05 -0.16 -0.13 -0.18

Dear Shareholders,


In the third quarter, Matra continued to execute the drilling and development program which resulted in accelerated growth and further sequential operational and financial improvements:

  • Q3 production was 23% higher than in Q2 and 43% higher than in Q1
  • 17 wells have been drilled on the Dial and Lyall leases, 12 of which had been completed by the end of Q3 and 5 are completed in Q4
  • Daily gross production passed 1,000 boepd in early October
  • Q3 Revenues were 24% higher than in Q2 and 37% higher than in Q1
  • EBITDA improved to 0.5 MUSD from being negative in the first half of the year



The new wells perform well and encourage further development of our leases in the Texas Panhandle. Our 24 well drilling program will extend into next year, as we are entering the winter season which is more challenging and reduces the pace of drilling. Upon completion of the current program, we plan to launch an expanded drilling program in 2019. With the addition of new well completions in Q4, our production targets remain within reach and we expect further production growth in 2019.


Financial results were driven by the increase in production, higher price realisations and improved cost efficiency. Oil and gas prices continued to increase in the third quarter. The effects of costly hedging contracts experienced in the first half of 2018 levelled off in the quarter and production costs per boe decreased.


Looking ahead, we expect further financial improvements and increasing cash flow driven by higher production levels and supportive oil and gas markets. So far in the fourth quarter, oil markets have been volatile with lower prices while gas prices have increased significantly. Increased cash flow from operations supports further investments in the coming year and improves our position to reduce financing costs by capitalising on better debt financing options.


The outlook is promising as we continue our efforts to transform Matra Petroleum through successful drilling, production growth, operational performance and reduced debt costs, with the objective to continue to add value to our oil and gas reserves and improve bottom line performance.


23 November 2018


Maxim Barskiy
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


Investor Relations


Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550


Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 103 90 Stockholm
Telephone: +46 (0)8-611 4995 | web: | Email:


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 8:30 CET on 23 November 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 170 leases, covering an area of 45,640 net acres in the Panhandle region in Texas. Matra's proved oil and gas reserves amount to approximately 25.0 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 (