RE: Healthy Balance Sheet25 Sep 2020 09:36
· Loss from continuing operations for the period ended 30 June 2020 was US$20.3 million (30 June 2019: loss of US$6.8 million). For clarity, this figure does not reflect Loan Notes cash received.
· Eroton completed its three well drilling programme in early 2020, with the final completion and flow of these wells impacted by Covid-19. The recent lower oil price has led Eroton to improve capital discipline and the prudent deferral of the next drilling campaign, now expected to commence towards the end of 2021.
Oil delivered to Bonny terminal for sales was approximately 25,200 barrels of oil per day ("bopd") in H1 2020 (32,000 bopd in H1 2019) and continues to be affected by combined losses and downtime of approximately 32%. The 2020 figure has also been affected by OPEC oil production quota restrictions.
Production downtime of 15% in H1 2020 was caused by third party terminal and gathering system issues.
· Pipeline losses by the Bonny Terminal operator have been relatively stable over the past year (30 June 2020: 20%; 30 June 2019: 18%).