15 May 2013 07:00
15 May 2013
Ruspetro plc ("Ruspetro" or the "Company")
Interim Management Statement
London, 15 May 2013: Ruspetro plc (LSE: RPO), the independent oil & gas development and production company listed on the London Stock Exchange, with operations in the Khanty-Mansiysk region of the West Siberian basin publishes today an update on its operations for the period from 1 January 2013 to 15 May 2013 and its financial highlights for the first quarter of 2013.
HIGHLIGHTS
·; Q1 average production rate of 5,986 bopd
o Crude production: 4,613 bopd
o Condensate production: 1,373 bopd
o Gas production: 6,135 boepd (currently not sold)
·; April average production rate of 5,452 bopd, of which 851 bopd is condensate
·; Pad 4 completed in the gas/condensate field, drilling commenced
·; Two further wells to be converted to water injectors in the Pad 21 area, scheduled to be completed in Q3 2013
·; Rig build-up preparations progressing on Pad 23
·; Seismic reprocessing is on-going for integration into the geological model update
·; Revenues of US$23.66 million, down US$0.998 million from Q4 2012, EBITDA of US$1.92 million, down US$0.48 million
·; Cash balance of US$26.01 million as of 31 March
·; Refinancing negotiations with Sberbank are progressing and are expected to be completed in H1 2013
Don Wolcott, Chief Executive, commented:
"In line with the plan laid out at our Strategic Review Presentation of 12 April, we are pleased with the progress made in our appraisal drilling program. Pad 4 has now been completed, with infrastructure in place and drilling commenced. Appraisal drilling from Pad 4 will enable us to further delineate the gas and condensate reservoir in the North. Drilling from Pad 23 will delineate the productive sands going west from the prolific crude oil producing Pad 21 area.
Our discussions with Sberbank are progressing and we are confident that they will be completed in the first half of 2013."
Financials
Revenues decreased by US$0.998 million to US$23.66m in the first quarter of 2013 compared to US$24.66 million in the fourth quarter of 2012. This is primarily due to a decrease in condensate production during the period with overall production volumes remaining constant. EBITDA was US$1.92m, this compares to US$2.4 million in the previous quarter.
The Company had net debt of US$352.53 million at the end of the period with US$26.01 million of cash.
Capital expenditure during the first quarter of 2013 was approximately US$15 million which compares to a capital expenditure of approximately US$35 million during the fourth quarter of 2012.
Refinancing negotiations with Sberbank are continuing with a resolution expected in H1 2013.
Drilling and Waterflood
During the period, Pad 4 was developed to the north-east of Pads 1 & 2 with all infrastructure commissioned including pipelines, power, road and bride access. This has enabled the Company to continue the appraisal and characterization of the gas/condensate formation. The Pad is approximately 5.5 kilometres from the Early Processing Facility. Drilling is now on-going from Pad 4.
Rig build-up preparations are on-going on Pad 23 in the crude oil producing west field area near the prolific Pad 21.
Waterflood enhancements are progressing in the Pad 21 area with two wells scheduled to be converted in Q3 2013 and two wells to be completed by Q1 2014. Waterflood in this area keeps us on the pathway to achieving the expected recovery factor of 28% and additionally offsets 80% of the natural decline over the next three years.
Future Announcements
Ruspetro's 2013 Half Year Results will be announced on Thursday 15 August.
Enquiries
Investors / Analyst enquiriesDominic Manley, Ruspetro+44 207 318 1265
Twitter: @ruspetroplc
MediaPatrick Handley / Catriona McDermott, Brunswick+44 207 404 5959
About Ruspetro
Ruspetro plc is an independent oil & gas development and production company, listed on the premium segment of the London Stock Exchange (LSE: RPO). The Company's operations are located on three contiguous licence blocks in the middle of the Krasnoleninsk Arch in Western Siberia. Ruspetro assets include proved and probable (2P) reserves of over 1.8 billion barrels of oil equivalent.