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Matra Petroleum AB: First quarter ended 31 March 2018

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

 

First quarter ended 31 March 2018 (First quarter ended 31 March 2017)

 

  • Revenue of TUSD 2,357 (TUSD 2,400)
  • EBITDA of TUSD -38 (TUSD 414)
  • EBITDA affected by realized hedge gains/losses of TUSD -144 (TUSD 259)
  • Net result for the period of TUSD -2,098 (TUSD 1,303)
  • Earnings per share (basic and diluted) amounted to -0.05 USD per share (TUSD -0.04)
  • Gross average oil and gas production amounted to 588 boepd (654 boepd)
  • Cash Flow from operations of TUSD 154 (TUSD 626)

 

Highlights

 

  • Revenue of TUSD 2,357 (TUSD 2,400)
  • EBITDA of TUSD -38 (TUSD 414)
  • EBITDA affected by realized hedge gains/losses of TUSD -144 (TUSD 259)
  • Net result for the period of TUSD -2,098 (TUSD 1,303)
  • Earnings per share (basic and diluted) amounted to -0.05 USD per share (TUSD -0.04)
  • Gross average oil and gas production amounted to 588 boepd (654 boepd)
  • Cash Flow from operations of TUSD 154 (TUSD 626)

             

  First
quarter
2018
  Fourth
quarter
2017
First
quarter
2017
Twelve
months
2017
 
Operational results          
Gross crude oil production, bbl 28,621   30,363 29,897 127,080
Gross gas and natural liquids production, mcf 145,530   173,536 173,734 707,543
Total, boepd 588   644 654 671
           
Net crude oil production, bbl 23,375   24,325 25,670 103,714
Net gas and natural liquids production, mcf 110,190   125,896 130,147 523,251
Total, boepd 464   492 526 523
           
Average selling price oil, USD/bbl 59.71   51.86 48.70 47.53
Average selling price gas USD/mcf 7.13   8.14 6.51 6.78
           
Financial results          
Revenue, TUSD 2,357   2,295 2,400 9,234
EBITDA -38   433 414 1,400
Operating result -344   -392 117 -560
Result for the period -2,098   -2,110 -1,303 -7,126
Earnings per share (basic and diluted), USD -0.05   -0.05 -0.04 -0.18

 

 

Dear Shareholders,

 

In the first quarter, the main events were that we secured the financing for an accelerated drilling program in 2018 and the principal agreement on acquisition of additional oil and gas reserves and production in our operating region. These events allow us to set our objective at doubling daily oil and gas production by the end of the year.

 

We plan to increase capital expenditures to MUSD 11 (2017: MUSD 5.2) and accelerate drilling and development activities on the company's leases in the Texas Panhandle. In the coming months, the company plans to drill 24 new wells to increase oil and gas production. In addition, an extensive program to improve oil and gas production from existing wells through workovers and reopening of shut-in wells has started. 

 

We are also in the process of completing the acquisition of 40 oil and gas leases in the Texas Panhandle from Melody Capital Partners LP. Through the acquisition, we are adding proven reserves of 4 million barrels of oil equivalent, from which approximately 115 boe per day were produced in March 2018. 

 

Melody is an important financial partner to Matra and we are extending our cooperation as Melody is providing additional debt financing for our drilling program and becoming a major shareholder in Matra through the acquisition.

 

In the first quarter 2018, severe winter conditions in Northern Texas continued to affect flow lines and compressors which held back production. We also had to face a short notice maintenance shutdown of the gas plant that processes our gas, which meant that gas production was halted for two weeks in March. Higher realized oil and gas prices compensated for lower production volumes resulting in revenues increasing slightly from the fourth quarter 2017 and in line with Q1 2017.

 

EBITDA and results were lower primarily due to the lower production volumes which resulted in higher production costs per barrel of oil equivalent produced and hedging losses. Despite this, Cash flow from operations was positive and improved from the fourth quarter 2017.

 

The harsh winter is behind us. We have started drilling the first well in this years' program, we are opening up previously shut-in wells and the workover program is well under way. As a result, oil and gas production increased to 680 boepd in April, up 16% from Q1. Upon closing of the pending acquisition, additional barrels will be added.

 

Increased production and higher oil prices support revenue, cash flow and earnings. Being a low cost producer of conventional oil and gas, Matra has significant operating leverage to improve financial performance as production continues to increase. We are committed to doubling daily production rates by the end of the year and look forward to updating you on the performance on the way there.

 

23 May 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
E-mail: IR@matrapetroleum.com

 

Investor Relations
Email: IR@matrapetroleum.com
Website: www.matrapetroleum.com

 

Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550
E-mail: info@mangold.se

 

Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 115 22 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: ir@matrapetroleum.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 8:30 CET on 23 May 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).

 

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