- Om Tethys Oil
FIRST QUARTER 2014
|MSEK (unless specifically stated)||First quarter 2014||Fourth quarter 2013||First quarter 2013|| Change, % |
Q1 2014 to Q4 2013
|Production, before government take (bbl)||608,582||499,028||368,481||22%|
|Average daily production, before government take (bbl)||6,762||5,424||4,094||25%|
|Net sales, after government take (bbl)||280,782||271,175||209,538||4%|
|Average selling price per barrel, USD||106.56||108.47||107.63||-2%|
|Net sales of oil and gas||195||193||146||1%|
|Result for the period||58||45||105||29%|
|Earnings per share before and after dilution, SEK||1.62||1.26||2.94||29%|
|Cash and cash equivalents||363||295||270||23%|
Dear Friends and Investors
25%. That is our production increase compared to the final quarter last year. The comprehensive drilling programme is paying off and lead times from discovery to production remain excellent. The appraisal well B4EW4-7 on area 4 encountered oil and confirmed reservoir extension to the south east. Another appraisal well is currently on-going so sooner or later we will find out where the B4EW4 reservoir structure ends. Let us hope it is later rather than sooner. We are appraising the area 6 (B4EW6) discovery and we are drilling another Lower Buah exploration well. And we expect to start drilling our first Masirah Graben exploration well later in the second quarter. But amid all this activity, let us stop to scrutinize the first quarter in a little more detail.
Average daily production for the quarter of 6,762 bopd was the highest quarterly production number in the company's history. Oil prices were almost flat compared to the previous quarter and we report an average selling price of USD 107 per barrel. Our net sales of MSEK 195 are also record high, but the sales could have been higher. Timing issues in sales have again resulted in higher production than sales volumes and we leave the quarter in an underlifted position of over 43,000 barrels. As for the bottom line, we are happy to report a result for the first quarter of MSEK 58.
All in all, a total of 15 wells were completed on Blocks 3 and 4 during the first quarter 2014. The development of the water injection system in the Barik layer on the Farha South oil field has also continued and further strengthened and stabilized the production from the field.
In Lithuania, the 3D seismic on Raiseiniai license show promise. More than a dozen potentially oil bearing reefal structures have been identified. Drilling is expected to start after the summer, and if luck stays with us, Lithuanian reserves and production could also increase.
Financially, we have strengthened our balance sheet and signed a four year, up to MUSD 100, senior revolving reserve based lending facility. The lending facility will reduce and optimize the financing costs as well as increase our operational and financial flexibility. The MSEK 400 bond loan has been redeemed.
The numbers underscores that we are in a better position than ever before. Our financial numbers are at record levels. Our production is at record levels. Drilling activity is at record levels. And the number of shareholders are at record levels. So welcome on-board and stay with us.
Stockholm in May 2014
For further information, please contact:
Magnus Nordin. Managing Director. phone: +46 8 505 947 02. e-mail:firstname.lastname@example.org
Morgan Sadarangani. CFO. phone +46 8 505 947 01. e-mail:email@example.com