Revenues22 Aug 2022 13:32
Investeg,
Pulling info from the FY accounts, capacity at MJF is 3750 after 142 and 300 bopd at SY. As stated. they'll be generating c$35 for export /$17 for domestic after transportation and taxation but before OPEX/CAPEX. A tidy sum of c $40m, probably less as i'm using 4kbopd @ 65/35% split but you can calculate on 3500 and still healthy. Every 1000 bopd will add $10m+ (after tax/transportation) and maybe they find some more reserves at SY ?
Enough to pay healthy divis but as per extracts from FY accounts below, maybe they look at other projects, even out of Kaz and the cash is giving them options.
Finally KEBCO would generate an additional $30m pa and that is transformational for this company valued at £70m ???
'Shallow structures
All of the oil produced in 2021 was from the MJF structure. The production capacity at the MJF structure has increased to 3,750 bopd, with seven wells producing and a further two wells planned before the year end, including Well 141 which is due to re-enter production shortly following a horizontal drilling workover.
Following the award of the export status at the South Yelemes structure we have been able to re-open wells there, which were shut in for the whole of 2021. The production capacity of these existing wells is approximately 300 bopd. As noted above we plan to drill a new well at a depth of 2,500 meters exploiting horizontal drilling targeting oil in the dolomite.
Our target with these new wells is as soon as possible to increase production capacity to 5,000 bopd solely from our shallow structures.'
'Also, with a new KEBCO designation for Kazakh oil and the EU confirming that Kazakh oil transported through the Russian pipeline systems is not subject to any sanctions we expect to be able to sell oil to our international oil trader partners in Kazakhstan at prices much closer to Brent.'
We estimate the impact of the sanctions related Urals Oil discount to currently be of the order of $30 million per annum based on current production volumes and prevailing international prices. Any reversal of the impact of the Urals Oil discount would flow directly to revenues and a large portion to profits.
'While we will continue to look at early-stage projects, such as in 2008 when we acquired our interest in BNG, our concentration will be on cashflow positive producing assets and for the right projects we would look beyond Kazakhstan.'
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