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Maurel & Prom: Activity for the First Nine Months Of 2021

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·6 min read
In this article:
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  • M&P's working interest production for the first nine months of 2021: 25,032 boepd

    • M&P working interest production of 15,160 bopd on the Ezanga permit in Gabon; first effects already noted after the resumption of development drilling in July, with a production of 16,542 bopd for M&P's working interest in September

    • M&P working interest production of 3,607 bopd in Angola and 37.6 mmcfd in Tanzania for the first nine months of 2021

  • Valued production of $317 million and sales of $301 million for the period, up 32% and 42% respectively compared to 2020

    • Buoyant market with an average sale price of $66.7/bbl for oil

    • Sales of $301 million after taking into account drilling activities ($1 million) and the restatement for lifting imbalances and inventory revaluation (combined negative impact of $17 million)

  • Accelerating deleveraging thanks to strong cash flow generation

    • Cash position of $161 million as at 30 September 2021, representing net debt of $397 million, reduced by $58 million over the first nine months of 2021

    • Further debt reduction is expected by the end of the 2021 fiscal year, with sustained cash flow generation due to two crude lifting before the end of the year for a total of around two million barrels

    • Refinancing of debt planned by the end of 2021

PARIS, October 21, 2021--(BUSINESS WIRE)--Regulatory News:

Maurel & Prom (Paris:MAU):

Key indicators for the first nine months of 2021

Q1
2021

Q2
2021

Q3
2021

9 months
2021

9 months
2020

Change
2021 vs
2020

M&P working interest production

Gabon (oil)

bopd

15,120

15,256

15,104

15,160

17,500

-13

%

Angola (oil)

bopd

3,333

3,786

3,698

3,607

4,002

-10

%

Tanzania (gas)

mmcfd

40.7

36.5

35.6

37.6

29.7

+26%

Total

boepd

25,240

25,124

24,738

25,032

26,458

-5

%

Average sale price

Oil

$/bbl

57.3

68.5

73.5

66.7

37.8

+76%

Gas

$/mmBtu

3.34

3.35

3.36

3.35

3.32

+1%

Sales

Gabon

$mm

71

80

85

236

184

+28%

Angola

$mm

12

16

17

45

30

+50%

Tanzania

$mm

13

12

11

36

27

+33%

Valued production

$mm

96

108

113

317

241

+32%

Drilling activities

$mm

0

0

1

1

6

Restatement for lifting imbalances and
inventory revaluation

$mm

-11

-6

-1

-17

-34

Consolidated sales

$mm

85

102

113

301

212

+42%

M&P's working interest Group production stood at 25,182 boepd for the first nine months of 2021, 5% lower than the same period in 2020 (26,458 boepd), with the increase in gas production in Tanzania only partially offsetting lower productions in Gabon and Angola.

The average sale price of oil was $66.7/bbl for the period, up 76% versus the first nine months of 2020 ($37.8/bbl).

The Group’s valued production (income from production activities, excluding lifting imbalances and inventory revaluation) was $317 million for the first nine months of 2021, up 32% compared to 2020. The restatement of lifting imbalances net of inventory revaluation resulted in a negative impact of $17 million in the first half of the year. As a result, the consolidated sales for the first nine months of 2021 came in at $301 million.

Olivier de Langavant, Chief Executive Officer at M&P, stated: "Having streamlined operations and reduced costs in 2020 means that we can now take full advantage of the current favourable prices. We intend to capitalise on this conducive environment to refinance the Group's debt, which is something we are currently working on. We thus pursue our determined objective of reducing debt while developing the Group's activities and paving the way for the return of shareholder remuneration."

Production activities

  • Gabon

M&P’s working interest oil production (80%) on the Ezanga permit is 15,160 bopd (gross production: 18,950 bopd) for the first nine months of 2021.

While the beginning of 2021 was affected by the suspension of drilling and production reductions imposed under OPEC quotas, the resumption of development operations in July (development drilling and stimulation campaign on existing wells) is already bearing fruit, with a noticeable increase in production potential.

M&P working interest oil production rose to 16,542 bopd in September (20,677 bopd at 100%). However, this improvement was offset in Q3 by a lower performance in August (13,018 bopd for M&P’s working interest) due to temporary production reductions following operations on the export pipe.

  • Tanzania

M&P’s working interest gas production (48.06%) on the Mnazi Bay permit stood at 37.6 mmcfd (gross production: 78.2 mmcfd) for the first nine months of 2021, a 26% net increase compared to the same period in 2020. Production remained relatively steady during the first three quarters of the year, and it stood at 35.6 mmcfd (74.1 mmcfd at 100%) for Q3.

  • Angola

M&P’s working interest production (20%) in Block 3/05 for the first nine months of 2021 was 3,607 bopd (gross production: 18,036 bopd). After a Q1 affected by maintenance operations, production remained stable during the second and third quarters.

Exploration activities

  • Colombia

M&P completed the terms of the exit of PRE-PSIE Coöperatief ("PRE"), a wholly-owned company of Frontera Energy Corporation, from M&P´s subsidiary Maurel and Prom Colombia B.V. ("M&P Colombia"). As a result, and having settled the mutual obligations between partners, after the transfer to M&P of PRE's 49.999% interests in M&P Colombia, M&P will hold 100% of M&P Colombia, which owns the COR-15 and Muisca exploration licenses. The drilling of two shallow exploration wells on the COR-15 license is planned for 2022.

Financial position

The cash position as at 30 September 2021 was $161 million. M&P has repaid $66 million in debt since the beginning of the 2021 fiscal year, reducing its gross debt to $557 million. The net debt stood at $397 million, versus $455 million at 31 December 2020. This deleveraging is expected to accelerate by the end of 2021, due to the resorption of the current underlift situation. Two liftings are planned for Q4 2021, one in Angola and the other in Gabon, for almost two million barrels in total.

M&P is currently working on the refinancing of the Term Loan beyond its current term of December 2023. This refinancing is expected to be completed during Q4 2021.

Discussions with the authorities in Gabon and Gabon Oil Company (GOC) are ongoing, with a view to reaching a constructive outcome with regards to the $43 million currently in an escrow account, and which corresponds to GOC's debt in respect of pre-2018 carrying costs. The various parties are currently working on a comprehensive solution to close this chapter shortly, as well as other ongoing matters with the Republic of Gabon.

Français

Anglais

pieds cubes

pc

cf

cubic feet

millions de pieds cubes par jour

Mpc/j

mmcfd

million cubic feet per day

milliards de pieds cubes

Gpc

bcf

billion cubic feet

baril

B

bbl

barrel

barils d’huile par jour

b/j

bopd

barrels of oil per day

millions de barils

Mb

mmbbls

million barrels

barils équivalent pétrole

bep

boe

barrels of oil equivalent

barils équivalent pétrole par jour

bep/j

boepd

barrels of oil equivalent per day

millions de barils équivalent pétrole

Mbep

mmboe

million barrels of oil equivalent

For more information, visit 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.

Maurel & Prom is listed for trading on Euronext Paris
CAC All-Tradable – CAC Small – CAC Mid & Small – Eligible PEA-PME and SRD
Isin FR0000051070/Bloomberg MAU.FP/Reuters MAUP.PA

View source version on businesswire.com: https://www.businesswire.com/news/home/20211020006184/en/

Contacts

Maurel & Prom
Press, shareholder and investor relations
Tel: +33 (0)1 53 83 16 45
ir@maureletprom.fr

NewCap
Financial communications and investor relations/Media relations
Louis-Victor Delouvrier/Nicolas Merigeau
Tel: +33 (0)1 44 71 98 53/+33 (0)1 44 71 94 98
maureletprom@newcap.eu

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