Announcement from P/F Atlantic Petroleum. Atlantic Petroleum. Operating profit (EBIT) was DKK 126.3MM in 2011

Transcription

1 Announcement from Atlantic Petroleum. Operating profit (EBIT) was DKK 126.3MM in 2011 Tórshavn, 24 th February 2012 (OMX: FO-ATLA) today announces its results for This company announcement should be read in conjunction with Atlantic Petroleum s Annual and Consolidated Report and Accounts 2011 and the extract from the independent reserves report also attached to this announcement. Atlantic Petroleum had a good result in Operating profit (EBIT) was DKK 126.3MM for the whole year (2010: DKK 147.3MM). 4Q 2011 EBIT was DKK 17.2MM (2010: DKK 53.7MM). Despite lower than anticipated production, the revenue in 2011 from oil and gas was a record high DKK 434.8MM (2010: DKK 422.5MM). Gross profit in 2011 was DKK 173.6MM (2010: DKK 166.0MM). Profit before taxation in 2011 was DKK 127.5MM (2010: DKK 163.1MM). Profit after taxation was DKK 66.6MM (2010: DKK 109.1MM). In 4Q 2011 profit before taxation was DKK 25.9MM (2010: DKK 53.9MM). Profit after taxation in 4Q 2011 was 25.9MM (2010: DKK 37.0MM) Production from Chestnut, Ettrick and Blackbird for 2011 was 737,000 barrels of oil equivalents. The average realised oil price was USD/barrel. Cash flow from operating activities was DKK 269.9MM (2010: DKK 239.7MM). More than doubled the licence portfolio Atlantic Petroleum added 15 licences to its portfolio through the acquisition of Volantis Exploration in 2011 bringing the total to 31 licences at year end excluding five UK 26 th Round licences offered for award on the 30 th December 2011 The Volantis Exploration acquisition also delivered a team of first class oil industry professionals and explorationists; enhancing Atlantic Petroleum s technical capability and positioning for future growth Page 1 of 5

2 Increased exploration portfolio delivering drilling opportunities Farmed in to the potential high impact Orchid prospect to be drilled in 1Q 2012 At least two Exploration & Appraisal (E&A) drilling projects in 2013 on Volantis acreage Spaniards agreement finalised with a well carry in 2012 Maintaining production Atlantic Petroleum achieved first oil from the Blackbird field in November 2011 which should maintain current production levels through 2012 Future reserves replacement Increased equity in Perth to 13.35% (at year end 10.80%) and submitted Field Development Plan in September Perth project potentially doubles Atlantic Petroleum reserves Pegasus discovery to be appraised in 2013 Ben Arabo, CEO of Atlantic Petroleum, stated: We more than doubled our licence portfolio in 2011 through the Volantis acquisition and the Orchid farm-in. The increased portfolio is delivering drilling opportunities in 2012 and beyond. We currently have 3 exploration and appraisal wells planned for 2012 and a further 2 wells from the Volantis portfolio are planned for 2013, and we are looking to expand the programme further with other wells and assets. In the short term the Blackbird production will maintain production levels and Perth will potentially have a large impact on our reserves. The longer term reserves potential comes from high impact exploration is going to be an eventful year in this respect with more E&A wells planned than in the two preceding years put together. The forward programme has the potential to bring a real step change for the Company. We are continually on the look out for new opportunities in the areas we work in and in North West Europe in general. We now have the organisation in place to succeed and we look forward to creating value and growing the Company in Page 2 of 5

3 Profit and loss for 4Q 2011 and Full Year 2011: Key numbers/figures 3 months 3 months Full year Full year 31 st December 31 st December 31 st December 31 st December DKK 1, Profit and loss: Revenue 97, , , ,470 Gross profit 38,527 59, , ,030 Operating profit (EBIT) 17,225 53, , ,331 Profit before taxation 25,866 53, , ,083 Profit after taxation 25,917 36,962 66, ,107 Balance sheet: Non-current assets 591, , , ,810 Current Assets 199, , , ,012 Total assets 791, , , ,821 Current liabilities 106, , , ,458 Non-current liabilities 240, , , ,463 Total liabilities 346, , , ,921 Net assets/equity 444, , , ,901 Cash flow and debt: Cash generated from operations 35,203 62, , ,686 Change in cash and cash equivalents -43,979 41,505 29,048 55,054 Bank debt 104, , , ,303 Page 3 of 5

4 2011 Highlights Operational Acquired Volantis Exploration adding significant acreage and drilling projects in the UK Southern North Sea Gas Basin Organisation positioned for growth by doubling team of professionals The Ettrick field produced a gross total of 5.9MM barrels of oil equivalents (boe) in 2011 and Blackbird produced 0.4MM boe gross. The Chestnut field produced a gross of 1.39MM barrels (bbls) in 2011 Net production to Atlantic Petroleum was 737,000 boe in 2011 Blackbird field brought on stream in November ahead of schedule and on budget A Field Development Plan was submitted to DECC for the Perth field in September D seismic acquisition projects completed over Ettrick, Blackbird & Marten licences Foxtrot well drilled but resulted in a dry hole Five licences offered for award in the second phase of the UK 26 th Licensing Round Increased equity in the Perth licence to 13.35% Financial Revenues of DKK 434.8MM in 2011 (2010: DKK 422.5MM). Average realised oil price in 2011 was USD per barrel Gross profit of DKK 173.6MM in 2011 (2010: DKK 166.0MM) Operating profit (EBIT) of DKK 126.3MM (2010: DKK 147.3MM) Profit before taxation of DKK 127.5MM (2010: DKK 163.1MM) Net cash flow from operating activities in 2011 of DKK 269.9MM (2010: DKK 239.7MM) Total assets of DKK 791.5MM ( 2010: DKK 671.8MM) Total equity of DKK 444.5MM ( 2010: DKK 377.9MM) Bank debt was DKK 105.0MM by year end 2011 of which DKK 65.0MM was long term. A total of DKK 57.3MM was repaid in 2011 Page 4 of 5

5 2012 Outlook Total production for 2012 is estimated to be between 700, ,000 boe net for the year Earnings Before Interest, Taxes, Depreciation, Amortisation and Exploration Expenses (EBITDAX) is predicted in the range of DKK 200.0MM to DKK 270.0MM (2011: DKK 266.0MM) on an expected average oil price of 100 USD/barrel and exchange rates USD/DKK 5.5 and GBP/DKK 8.6. Continue Blackbird field development drilling Decision on Perth development Participation in exploration drilling in 2012 including the Orchid and Brugdan wells Further expand the Company s activities in North West Europe Continue to build the exploration portfolio including participation in the recently announced UK 27th Round Continue to populate the 2012/2013 drilling programme Further Details: Further details can be obtained from Ben Arabo, CEO, tel (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: On the website, it is also possible to sign up for the Company s newsletter. Announcement no. 4/2012 Issued Page 5 of 5