TIDMJUB
RNS Number : 0904T
Jubilant Energy N.V.
10 December 2012
10 December 2012
Jubilant Energy NV
("Jubilant" or "the Company")
Interim Results for the period ended 30 September 2012
Jubilant Energy N.V, an upstream oil and gas company with assets
in major proven and prolific hydrocarbon basins, primarily in India
and Myanmar, is pleased to announce interim results for the six
months period ended 30 September 2012.
FINANCIAL OVERVIEW
-- Revenues stable at USD 8.6 million in the first half of the
current financial year, despite lower international oil prices.
-- Average oil price realised decreased by 5 % to USD 112 per barrel.
-- Profit from operating activities of USD 2.2 million against a
loss of USD 49,000 in the corresponding period of the previous
year.
-- New rupee loan agreement signed with a consortium led by
State Bank of India for a 12 year term loan facility of INR 1,340
crores (approximately USD 254 million) in September 2012. Facility
to fund the capital expenditure for appraisal and development of
the Company's KG Block and repayment of the existing facility of
INR 650 crores (USD 123 million).
-- Net debt of USD 328 million as of 30 September 2012. Undrawn
facilities for the KG Block and cash balance available to the
company total approximately USD 151 million (converted at USD 1 =
INR 52.65 as of 30 September 2012).
OPERATIONAL OVERVIEW
Production and near term production upside- Kharsang Field (WI -
25%)
-- Average gross production of 1,857 bopd during H1 2012-13, up
from 1,757 bopd in the same period of 2011-12 as a result of the
successful seven well development drilling programme.
-- Cumulative production from the field was 10.47 MMbbls as at 30 September 2012.
-- Six of the seven wells of the Phase III development drilling
programme tested oil and put on production, currently contributing
to approximately 700 bopd. One well tested gas and has been kept
shut for future gas utilization, as it is commercially viable.
-- Drilling of an additional six development wells under the
Phase III extension drilling programme, commencing Q1 2013.
-- Various production enhancement pilot schemes commenced from November 2012.
-- Acquisition of 3D seismic of 87 square kilometres underway
and expected to complete by May 2013, before the rainy season.
-- A Reserves and Resources Estimation prepared by Gafney, Cline
& Associates ("GCA") as of 31 December 2011, updating its
earlier estimate as of June 30, 2010:
o Gross reserves increased by 9.5% to 5.31 MMbbls, adjusted for
production.
o Gross Contingent gas resources ranges from 15.9 bcf to 43.5
bcf, with 2C gas resources at 27.7 bcf, increase of 45%.
o Gross Contingent Oil resources range from 2.47 MMbbls to 3.85
MMbbls, with a 2C Oil resources of 3.13 MMbbls, an increase of
286%.
o Significant exploration upside.
Development Programme - Deen Dayal West Field in Krishna
Godavari basin ("DDW") (WI - 10%)
-- Development of KG on track for first gas in H2 2013.
-- The Well Head Platform set in May 2011 and currently being
used for batch drilling of four development wells.
-- Other facilities such as the Production and Living Quarter
Platform ("PLQP"), Onshore Gas Terminal ("OGT") and pipeline are
all on schedule for first gas production in H2 2013. The OGT 80%
complete, whilst the PLQP and submarine pipeline were 74% and 48%
respectively completed by end October 2012.
-- The Government approved the extension to the existing DDW
development area by 20.5 square kilometres in January 2012 thus
increasing the total development area to 37.5 square
kilometres.
-- Reserves and resources update by GCA as of 31 May 2012, post
the approval of the DDW Extension area and the drilling of the
appraisal wells in the DDE area. Upward revision in the Gross
Contingent Resources (2C) in the Deen Dayal Structural complex
revised upwards by approximately 11% for gas and 10.2% for
condensate over the earlier estimates of June 2010.
Exploration and Appraisal Upside
Tripura (WI - 20%)
-- Declaration of Commerciality ("DOC") for the Kathalchari
discovery, incorporating the results of the wells drilled in the
Tulamura anticline, currently being finalised. DOC scheduled for
submission on 28 December 2012 after necessary approvals.
-- The first deeper exploratory well, Matabari-1 on Tulamura
anticline, under the Phase-II programme, spudded in May 2012 and
drilled to 3,287 metres against a target of 4,060 metres due to
drilling complications. In the Middle Bhuban formation, gas bearing
sands encountered of which one sand interval tested with mini DST.
Detailed testing is scheduled for December 2012. with a workover
rig.
-- The second deeper exploratory well, North Atharamura-1 in
Atharamura anticline, expected to be spudded in December 2012 with
a targeted depth of 4,060 metres.
-- Completed the 2D seismic survey of 125 lkms under the
Phase-II programme in Atharamura. Recording of 70% completed.
Manipur - North and South Blocks (WI - 100%)
-- Approximately 30% of 540 kilometres of 2D seismic acquisition
completed in both the North and South blocks.
-- Received the processed data of the Airborne Gradiometric
survey from the Government, and is being integrated with current
geological dataset.
-- Six drilling locations based on prospect and logistics
feasibility shortlisted in the two blocks.
Myanmar (WI -77.5%)
-- Strategic entry into Myanmar achieved with the acquisition of
the PSC-I block. PSC signed in May 2012.
-- Commenced operations activities and successfully completed
reconnaissance survey in August 2012.
-- Sub-surface technical work underway. Completed archiving of
subsurface and seismic data collected from MOGE.
-- A tender for 2D seismic acquisition floated and bids are currently being evaluated.
-- Branch Office registration Certificate received from DICA in
October 2012 and necessary bank accounts opened and
operational.
Mr.Shyam Bhartia, Chairman and Mr. Hari Bhartia, Co-Chairman of
Jubilant Group commented:
"Jubilant has continued to deliver on its strategy and has made
significant progress across all aspects of its portfolio. At
present the Kharsang field is achieving its highest ever recorded
production due to a successful seven well Phase III development
drilling programme and as such the Company is undertaking an
additional six well Phase III development drilling programme, which
is expected to commence in Q1 2013. The KG basin continues to be
the Company's most significant asset and remains on course for
first gas in H2 2013. Jubilant continues to press ahead with its
exploration and appraisal programmes in Manipur and Tripura as we
look to maximise the potential of these very promising assets.
Earlier on in the year Jubilant acquired Block PSC-I in Myanmar,
complementing its already existing portfolio and a further
extension to the Company's strategy. Myanmar is a proven
hydrocarbon region and is an exciting move for Jubilant.
The Company has an extensive programme planned across all of its
assets as we look to maximise the potential of our portfolio. The
considerable opportunities remain hugely promising as we look ahead
to 2013 and we look forward to updating the market over the course
of the year"
Enquiries:
Ajay Khandelwal, Vipul +91 120 402
Jubilant Energy Agarwal 5700
+44 20 7886
Panmure Gordon Katherine Roe, Adam James 2500
+44 20 7547
Deutsche Bank Rajat Katyal, Drew Price 8000
Matthew Tyler, Alexandra +44 20 7457
College Hill Roper 2020
Competent Person's - Consent for Release
Mr. Ramesh Bhatia - Vice President (Exploration), holds a
Master's of Science degree in Applied Petroleum Geology and has
over 20 years of experience in the Oil and Gas Exploration,
Development and Production industry. He has reviewed and approved
the technical information contained in this announcement pursuant
to the AIM guidance note for mining and oil and gas companies.
Glossary of abbreviations
APM Administered Price Mechanism
------ ------------------------------------
Bbl Barrel
------ ------------------------------------
Bcf Billion cubic feet
------ ------------------------------------
Bopd Barrels oil per day
------ ------------------------------------
DDE Deen Dayal East
------ ------------------------------------
DDW Deen Dayal West
------ ------------------------------------
DST Drill Stem Test
------ ------------------------------------
DOC Declaration of Commerciality
------ ------------------------------------
DGH Directorate General of Hydrocarbons
------ ------------------------------------
FDP Field Development Plan
------ ------------------------------------
Gaffney, Cline & Associates
GCA (Consultants) Pte Ltd
------ ------------------------------------
GCoS Geological Chance of Success
------ ------------------------------------
Lkms Line kilometres
------ ------------------------------------
LNG Liquefied Natural Gas
------ ------------------------------------
MC Management Committee
------ ------------------------------------
MD Measured Depth
------ ------------------------------------
MMbbl Millions of barrels
------ ------------------------------------
Mmboe Million barrels of oil equivalent
------ ------------------------------------
Millions of British Thermal
MMBTU Units
------ ------------------------------------
Mscf Metric standard cubic feet
------ ------------------------------------
NELP New Exploration Licensing Policy
------ ------------------------------------
OGT Onshore Gas Terminal
------ ------------------------------------
PLQP Pipeline Living Quarters Platform
------ ------------------------------------
PML Petroleum Mining Licence
------ ------------------------------------
TVD True Vertical Depth
------ ------------------------------------
TVDss True Vertical Depth Subsea
------ ------------------------------------
WHP Well Head Platform
------ ------------------------------------
Chief Executive's Statement
The six months ended 30 September 2012 has been a period during
which the Company has continued to develop its strategy of building
and exploiting its diverse portfolio of exploration, development
and producing oil and gas assets in major proven and prolific
hydrocarbon basins in India and Myanmar.
The continued development of the Deen Dayal West field in the KG
block remains on course to deliver first gas in H2 2013. The
Kharsang block, on average, produced approximately 1,857 bopd for
the first six months of the year, an increase of 5.7% over the same
period of 2011-12 as a result of the successful seven well
development drilling programme. We are particularly excited to
start our exploration and appraisal programme in Manipur and
Tripura, located in the prolific and proven hydrocarbon basins in
the north east of India. The period also saw us make a strategic
entry into Myanmar with the acquisition of PSC-I block.
This is a very exciting time for the Company with considerable
opportunities ahead. We have an extensive programme across our
assets as we look to maximise the potential of our portfolio.
Production and near term production upside- Kharsang Field (WI -
25%)
The Kharsang block, located in the Upper Assam basin in the
north-eastern region of India, is the Company's oldest block and
has been in production since 1983. Jubilant has a 25 per cent
interest in the block and is operated by Geo Enpro Petroleum
Ltd.
Gross production from the field during the first six months of
the financial year totalled 339,730 bbl (1,857 bopd), up by 5.7%
compared to the corresponding period of the preceding year. This
was mainly due to a successful seven wells Phase III development
drilling programme. Six of the seven wells tested oil and have been
put on production contributing to approximately 700 bopd. The
remaining well tested gas and has been kept shut for future gas
utilization, as it is commercially viable. The field is at present
producing in excess of 2,000 bopd, achieving its highest ever
recorded production of 2,253 barrels of oil on 23 October 2012,
beating the previous high of 2,227 achieved in December 2009.
In line with the Company's strategy to maximise the potential of
its producing assets a Phase III Extension Development drilling
plan comprising six wells is scheduled to commence in Q1 2013,
aimed at further adding to the production profile of the Kharsang
field.
The average realised oil price per barrel, which is linked to
Bonny Light and Qua Ibo, during the first six months of the
financial year, was USD 112 as compared to USD 117.93 for the first
six months of 2011-12 reflecting the general softening of
international crude prices during the period.
The consortium is also piloting various other projects in order
to increase the production from the Kharsang field, as summarised
below:
-- Sand Control - A gradual decline in production was observed
due to caving build up in all producing wells in the C to I layers,
resulting in increased downtime. A pilot project commenced in
November 2012 on the first of the two wells to reduce down time and
achieve additional oil gain, using Weatherford's SandAid
proprietary Technology, being implemented for first time in India.
The success of this pilot project shall help us in reducing the
well down time, multi-zone completion for shallow wells and a good
lead for A&B wells.
-- Wax Inhibition - A pilot project planned for wax control in
one of the wells to reduce down time and achieve additional oil
gain through a downhole heater arrangement is expected to be
commissioned in Q1 2013.
-- Multi-Zone Single String and Dual String Completion - A pilot
project is planned in December 2012 to complete existing wells
having multiple producing layers in southern area with down-hole
chemical injection for wax inhibition. Two wells are planned for
single string Multi-Zone completion whilst one well is planned for
dual string Multi-Zone completion.
-- Gas Lifting Using CNG - Gas lift is being viewed as the most
suitable lift method for the Kharsang field, in view of sound
reservoir surveillance/management. An engineering study for the
integrated project initiated covering:
o Compression of associated gas presently being flared.
o Implement lift gas system in phased manner and optimize well
production.
o Recover liquids from wet gas during compression.
o Stop flaring of gas and put into the system for sale.
The deeper exploratory well, KPL-DX, which was spudded in August
2011, was drilled to a depth 1,609 metres MD against a target of
2,828 metres TVD. The well was temporarily plugged and abandoned
due to high pressure encountered at 1,609 metres MD. The well
encountered potential hydrocarbon bearing sands at 1,557 metres MD,
1,583 metres MD and 1,607 metres MD. The plan for re-entry and
exploration in deeper prospects is currently under consideration,
the consortium has identified an international specialist
consultancy to advise on re-entry and the testing of prospective
zones. The scope of work for the consultant will also include well
design and drilling operational management for an alternate
exploratory well, down dip of KPL-DX.
The acquisition of approximately 87 square kilometres of 3D
seismic survey in the field has commenced and is expected to be
completed by May 2013 before the onset of the rainy season. The
survey will provide better subsurface imaging and understanding of
potential hydrocarbon zones in the Kharsang field.
A Reserves and Resources Estimation was prepared by GCA as on 31
December 2011, updating its earlier estimate as of June 30, 2010.
The highlights of the reserves and resources update are:
o Gross reserves increased by 9.5% to 5.31 MMbBls, adjusted for
production.
o Gross Contingent gas resources ranges from 15.9 bcf to 43.5
bcf, with 2C gas resources at 27.7 bcf, increase of 45%.
o Gross Contintent Oil resources range from 2.47 MMbbls to 3.85
MMbbls, with a 2C Oil resource of 3.13 MMBBls, an increase of
286%.
o Significant exploration upside- Best Estimate Gross Unrisked
Prospective Resources:
Ø Namsang Oil Prospects: 2.6 MMBbls with GCoS of 75%
Ø Lower Girujan Oil Prospects: 9.9 MMBbls with GCoS of 50%
Ø Lower Girujan Gas Prospect: 102 Bscf with GCoS of 50%
Ø Tipam Gas Prospect: 296 Bscf with GCoS of 50%.
Development Programme - Deen Dayal Field in Krishna Godavari
basin (WI - 10%)
The KG basin continues to be the most significant asset in the
Jubilant portfolio. The operator is Gujarat State Petroleum
Corporation ("GSPC"), promoted by the State Government of Gujarat,
and the Company actively participates with the operator in
technical evaluations.
The Ministry of Petroleum and Natural Gas of the Government of
India ("MoPNG"), had approved an extension of 20.5 square
kilometres to the existing contract area for the Krishna Godavari
Block (KG-OSN-2001/3) in January 2012. As a result of the
extension, the approved development area for Deen Dayal West (DDW)
has increased from 17 square kilometres to a total of 37.5 square
kilometres.
Gaffney Cline & Associates ("GCA") prepared a Reserves &
Resources Update for the Deen Dayal Structural complex as of 31 May
2012 post the approval of the DDW Extension area and the drilling
of the appraisal wells in the DDE area. The Gross Contingent
Resources (2C) for the block has been revised upwards by
approximately 11% for gas and 10.2% for condensate over the
estimates of 30 June 2010.
The Contingent Resource estimates audited by GCA as of 31 May
2012 for the DDWE area are summarized below:
Particulars Gross Contingent Net Contingent
Resources Resources to Jubilant
DDWE
---------------------- ---------------------- ---------------------------
1C 2C 3C 1C 2C 3C
---------------------- ------ ------ ------ -------- -------- -------
As of 31 May 2012
---------------------------------------------------------------------------
Recoverable
Gas (Bscf) 585 1111 2098 59 111 210
---------------------- ------ ------ ------ -------- -------- -------
Recoverable
Condensate (MMBbls) 7.00 22.20 50.40 0.70 2.22 5.04
---------------------- ------ ------ ------ -------- -------- -------
The comparative Contingent Resources as of 31 May 2012 and 30
June 2010 are summarized below:
Particulars Gross Contingent Net Contingent
Resources Resources to Jubilant
DDE
---------------------- ----------------------- ---------------------------
1C 2C 3C 1C 2C 3C
---------------------- ------ ------ ------- -------- -------- -------
As of 31 May 2012
----------------------------------------------------------------------------
Recoverable
Gas (Bscf) 1,348 2,586 4,376 135 259 438
---------------------- ------ ------ ------- -------- -------- -------
Recoverable
Condensate (MMBbls) 16.20 51.70 105.00 1.62 5.17 10.5
---------------------- ------ ------ ------- -------- -------- -------
As of 30 June 2010
----------------------------------------------------------------------------
Recoverable
Gas (Bscf) 2,593 3,113 3,353 259 311 353
---------------------- ------ ------ ------- -------- -------- -------
Recoverable
Condensate (MMBbls) 41.50 62.30 80.50 4.15 6.23 8.05
---------------------- ------ ------ ------- -------- -------- -------
The development of the Deen Dayal West Field ("DDW") is expected
to produce first gas in H2 2013. Current activities include setting
up shore-based handling facilities and development. The Well Head
Platform was set up in May 2011 and the batch drilling of four
development wells commenced in September 2011. The overall progress
achieved on the platform is approximately 94.5%. The first
development well was spudded using a jack-up rig in September 2011
with the rig batch drilling the top hole sections of the four
wells. Subsequently, a more cost efficient modular rig replaced the
jack up rig, which was moved to DD East to drill the second
appraisal well.
The current status of the four development wells is given
below:
1. DDW-D1 5,459 metres MD (up to targeted depth)
2. DDW-D2 4,691 metres MD (up to 12 1/4 ")
3. DDW-D3 5,272 metres MD (up to targeted depth)
4. DDW-D4 4,200 metres MD (up to 12 1/4 ")
The Onshore Gas Terminal was 80% complete by the end of October
2012 and is expected to be commissioned in time for first gas. The
Onshore Gas Terminal (OGT) is being developed to process the
multiphase dehydrated fluid being received from the offshore
process platform (PLQP) to meet the specifications of gas sales.
The OGT facility is being setup over a 69 hectare plot, located
approximately 3.5 kilometres west of the shore line in Mallavaram
village, near RIL's Onshore Terminal of the KG D6 development.
Plant facilities are spread over 48.7 hectares and a green belt
development is to be taken-up over 20.3 hectares. By the end of
October 2012 the PLQP was 74% complete while the submarine pipeline
was 48% complete.
The first draft of the integrated DoC for areas other than DDW
of the Deen Dayal Field is under review for a final submission by 6
March 2013 and the operator has called for a Technical Committee
Meeting to review the DoC in December 2012.
Exploration and Appraisal Upside
Tripura (WI -20%)
Jubilant is the operator on this block with a 20 per cent
participating interest.
The Company is finalizing the DOC for the Kathalchari discovery
after incorporating the results of the wells drilled in the
Tulamura anticline (Srikantabari-1, KL-NE and Matabari-1). The DOC
will be submitted on 28 December 2012 after obtaining the necessary
approvals.
Jubilant drilled the first exploratory well, Matabari-1 in the
Tulamura anticline, under the Phase-II programme. Matabari-1 well
was spudded in May 2012 to explore the hydrocarbon potential of the
Lower Miocene Lower Bhuban and Late Oligocene Renji sands as
primary objectives and the Middle Bhuban sands as a secondary
objective. This was the first exploratory well in the Block
targeting deeper objectives beyond the Middle Bhuban. The well was
drilled to 3,287 metres against a target of 4,060 metres due to
drilling complications. In the Middle Bhuban formation, gas bearing
sands were encountered of which one sand interval was tested with
mini DST. Detailed testing is scheduled in December 2012 with a
workover rig.
A second deeper exploration well to complete the Phase-II
Minimum Work Programme, North Atharamura-1 on the Atharamura
Anticline, is expected to spud in December 2012 with a targeted
depth of 4,060 metres. While the Phase-II was to expire on 24
January 2013, the consortium is taking suitable action to extend
the date.
The seismic programme for acquiring 125 lkm of 2D data over N
Atharamura, N Ambasa and Khushiram area was taken up as a part
Phase-II programme. Survey for this exploration seismic programme,
which commenced in March 2012, is now complete, while the recording
commenced in May 2012 and is over 70% complete.
Manipur Blocks (100%)
The two Manipur Blocks, AA-ONN-2009/1 & 2, are located in
the eastern extension of the Burma-Assam-Arakan fold thrust belt
which covers almost 4,000 sq kms. Best estimate prospective
resources have been assessed at 4.77 tcf on an unrisked basis. GCA
is working to revise the prospective resources in line with the
higher Management Estimate and their report is expected shortly.
With Jubilant holding 100 per cent PI, the blocks provide
significant long term upside potential.
Jubilant embarked upon a 2D seismic acquisition programme of 540
lkms in the two Manipur blocks. To date, over 260 lkms have been
surveyed despite the rough terrain and logistical challenges and
recording of over 150 lkms has been completed.
Jubilant had contracted Bell Industries to undertake an airborne
gradiometer survey which was completed in November 2011 and 5,273
lkms of data was acquired. The processed and first pass
interpretation outputs submitted to the Ministry of Defence for
security vetting has now been released to Jubilant by DGH in July
2012. The data will now be integrated with the current geological
dataset.
A number of drilling locations were scouted within the two
blocks and based on the prospect and logistics feasibility, six
locations have been shortlisted.
Myanmar (WI - 77.5%)
Jubilant acquired block PSC-I awarded under the Myanmar Onshore
Blocks Bidding Round in 2011, complementing its already existing
portfolio in the nearby North Eastern India. The Central Burma
basin of Myanmar is rich in oil and gas resources with discoveries
and production dating back to 1887 and the early 1990's. Jubilant
will utilise its in-house expertise as operator of Tripura, Manipur
and Assam blocks, which are geological and tectonically similar in
setup to this newly awarded block.
The Production Sharing Contract (PSC) for the block was executed
at Nay Pyi Taw in May 2012 between Jubilant, Parami Energy
Development Company Limited (Parami) and Myanma Oil & Gas
Enterprise (MOGE), an enterprise formed by the Government of the
Republic of the Union of Myanmar. Jubilant holds a 77.5%
participating interest in this block and will be the Operator,
while Parami holds the remaining 22.5% participating interest in
this block.
The block covers an area of approximately 3,600 sq km and is
located about 125 kilometres North West of Yangon City. The block
falls in the Irrawaddy Delta Sub-basin and partly in the Pyay
Embayment Sub-basin of the Central Burma Basin, which is believed
to be the most prolific sedimentary basin in Myanmar, where giant
fields such as Chauk-Lanywa and Yenangyaung are located. The
awarded block is also located adjacent to the Myanaung and
Shwepyitha producing fields.
The Commencement of Operations Date (COD) was announced to MOGE
on 23 August 2012.
A reconnaissance survey of the block was successfully completed
by the Jubilant team in collaboration with MOGE and Parami
representatives in early July 2012. As well as scouting the area
for understanding topography, terrain, logistics, availability of
infrastructure / facilities etc, the team also located and scouted
the wellsites for the four existing wells to evaluate the option
for re-entry.
The following data was collected from MOGE in June 2012:
-- Field 2D Seismic data
-- Log data for all the four wells
-- G&G reports including Gravity survey reports
The Sub-surface technical work is underway and we have completed
archiving of subsurface and seismic data collected from MOGE. The
tender for 2D seismic acquisition was floated and bids are under
evaluation.
Jubilant has also received the Branch Office registration
Certificate from DICA in October 2012. The necessary bank accounts
have also been opened and are now operational.
Other Asset
Sanand Miroli (WI-20%)
The Company has a 20 per cent. interest in this block and GSPC
is the operator. So far, 20 wells have been drilled on the block,
including three appraisal wells, with seven hydrocarbon discoveries
to date. A DOC for the M1-M6 discoveries submitted in 2009 was
approved by the DGH. The Management Committee ("MC") of the Block
has given an in-principle approval of the Field Development Plan
for the M1-M6 discovery subject to condoning the 3 days delay by
the Government. Pending such approval, the consortium has requested
to allow the start of production from the existing two wells M1
& M1a1. All the required facilities are available to start the
commercial production from two existing wells immediately.
The MC has also given its in-principle approval to the revised
DOC of Sanand (Part-A) considering OIIP of 15.45 MMbbl, EUR of
0.5680 MMbbl and a Peak Rate of 229.60 BOPD. The MC also agreed to
include Well SE#3 in the development plan, as the same was earlier
denied by DGH since the operator had not notified the said
discovery. Production is envisaged from six existing wells and one
proposed horizontal well.
Outlook
Jubilant is well positioned and the year ahead promises to be
another exciting one as the Company looks to build on what has been
achieved during this period. The Phase III drilling programme on
Kharsang is now complete and the Company is now entering an
additional six well Phase III extension drilling programme. The KG
field development is well on course for first gas in H2 2013.
Having entered the Phase -II exploration stage in Tripura as well
as commencing the next very exciting stage of the Manipur
programme, the Company looks forward to providing further updates
as the Company continues to push ahead over the year.
Our focus, as operator, remains on North East India and our
entry into Myanmar is a further extension of this strategy as the
Company looks to build upon its core strengths and in-house
expertise that are already in place for this region. Myanmar is a
prolific hydrocarbon region and is an exciting move for us. As the
Company continues to further build on its diverse portfolio of oil
& gas assets we look forward to working closely with our
partners in exploring these assets further. The Company has an
excellent portfolio of potentially company making assets, a team
with the expertise to exploit them fully and an extensive work
programme across them all. This is an exciting time for the Company
as it embarks upon the next stages of its work programmes with a
view to proving up the inherent value that the Company believes is
across its portfolio.
Condensed Consolidated Statement of Comprehensive Income for the
six-month period ended 30 September 2012
(in thousands of US Dollars) For the six months
period ended
30 September
2012 2011
------------------------------------ ------------ ----------
(Unaudited) (Audited)
------------------------------------ ------------ ----------
Oil and natural gas revenue 8,605 8,666
Other income 375 605
8,980 9,271
------------------------------------ ------------ ----------
Production and operating expenses 1,456 1,266
Personnel costs 1,728 4,145
Depletion, depreciation and
amortisation 1,110 1,468
Other expenses 2,508 2,441
6,802 9,320
------------------------------------ ------------ ----------
Results from operating activities 2,178 (49)
Finance income 2,782 859
Finance expenses 7,075 3,203
Net finance expense (4,293) (2,344)
------------------------------------ ------------ ----------
Loss before income taxes (2,115) (2,393)
Income tax expense (3,374) (3,127)
Loss for the period (5,489) (5,520)
------------------------------------ ------------ ----------
Other comprehensive income
Foreign currency translation
difference for foreign operations (772) (4,052)
------------------------------------ ------------ ----------
Other comprehensive income
for the period,
net of income tax (772) (4,052)
Total comprehensive income
for the period (6,261) (9,572)
------------------------------------ ------------ ----------
Loss attributable to:
Owners of the Company (5,489) (5,520)
Total comprehensive income
attributable to:
Owners of the Company (6,261) (9,572)
Basic and diluted loss per
share (USD) (0.013) (0.013)
------------------------------------ ------------ ----------
Condensed Consolidated Statement of Financial Position
(in thousands of US 30 September 31 March 30 September
Dollars) 2012 2012 2011
------------------------------- ------------- ---------- -------------
(Unaudited) (Audited) (Audited)
------------------------------- ------------- ---------- -------------
Assets
Inventories 926 898 782
Short-term investments 3,688 24,857 37,343
Current tax assets 1,637 1,834 630
Trade and other receivables 30,190 26,852 26,241
Other current assets 3,481 847 2,836
Cash and cash equivalents 15,965 56,287 22,174
Total current assets 55,887 111,575 90,006
------------------------------- ------------- ---------- -------------
Property, plant and
equipment 153,775 117,694 94,242
Intangible exploration
and other intangible
assets 219,178 193,153 177,351
Trade and other receivables 1,040 970 1,440
Other non-current assets 3,668 1,889 36
Total non-current assets 377,661 313,706 273,069
------------------------------- ------------- ---------- -------------
Total Assets 433,548 425,281 363,075
------------------------------- ------------- ---------- -------------
Equity
Issued and paid-up
share capital 5,581 5,581 5,581
Share premium 105,047 105,047 105,047
Retained earnings (110,605) (105,909) (98,633)
Stock options outstanding
reserve 11,962 12,358 10,415
Foreign currency translation
reserve (15,651) (14,879) (12,259)
Total equity (3,666) 2,198 10,151
------------------------------- ------------- ---------- -------------
Liabilities
Loans and borrowings 20,661 16,051 5,478
Trade and other payables 38,747 23,058 18,993
Current tax liabilities 616 536 602
Other current liabilities 768 1,094 427
Total current liabilities 60,792 40,739 25,500
------------------------------- ------------- ---------- -------------
Loans and borrowings 352,646 360,695 308,376
Trade and other payables - 254 -
Employee benefits 828 604 542
Provisions 1,451 1,332 1,325
Deferred tax liabilities 21,359 19,321 17,181
Other non-current liabilities 138 138 -
Total non-current liabilities 376,422 382,344 327,424
------------------------------- ------------- ---------- -------------
Total liabilities 437,214 423,083 352,924
------------------------------- ------------- ---------- -------------
Total equity and liabilities 433,548 425,281 363,075
------------------------------- ------------- ---------- -------------
Condensed Consolidated Statement of Cash Flows for the six-month
period ended 30 September 2012
For the six months period
ended
(in thousands of US Dollars) 30 September
2012 2011
---------------------------------------- -------------------------------------- ------------------------------------
(Unaudited) (Audited)
---------------------------------------- -------------------------------------- ------------------------------------
Cash flows from operating activities
Loss after tax for the period (5,489) (5,520)
Adjustments for:
Depletion and depreciation 1,023 1,416
Amortisation of other intangible
assets 87 52
Net finance expenses 3,997 2,324
Equity-settled share-based payment
expense 397 2,219
Income tax expense 1,069 1,013
Deferred tax expense 2,305 2,114
Change in working capital (2,536) 1,821
---------------------------------------- -------------------------------------- ------------------------------------
Cash generated from operating
activities 853 5,439
Income tax (paid)/ refund, net (608) 605
Net cash generated from operating
activities 245 6,044
---------------------------------------- -------------------------------------- ------------------------------------
Cash flows from investing activities
Interest received 572 683
Dividend received - 575
Acquisition of property, plant
and equipment, intangible exploration
assets and other intangible
assets (33,046) (25,432)
Proceeds from disposal of property,
plant and equipment 1 1
Loans given - (643)
Change in advances to co-venturers (1,130) (2,069)
Investment in non-trade investments
(mutual fund) (41,689) (70,710)
Proceeds from disposal of non-trade
investments ( mutual fund) 63,005 29,902
Investment in term deposits
and restricted cash (1,233) (999)
Proceeds from disposal of term
deposits and restricted cash 92 2,682
Tax paid on interest income (207) (221)
Net cash used in investing activities (13,635) (66,231)
---------------------------------------- -------------------------------------- ------------------------------------
Cash flows from financing activities
Proceeds from loans and borrowings - 67,044
Payment of debt transaction
cost and share issuance cost (1,376) (300)
Repayment of loans and borrowings (2,755) (39)
Interest paid (20,907) (16,028)
Net cash (used in)/generated
from financing activities (25,038) 50,677
---------------------------------------- -------------------------------------- ------------------------------------
Net decrease in cash and cash
equivalents (38,428) (9,510)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at
1 April 56,287 32,175
Effect of exchange rate fluctuations (1,894) (491)
Cash and cash equivalents at
30 September 15,965 22,174
---------------------------------------- -------------------------------------- ------------------------------------
Condensed Consolidated Statement of Changes in Equity for the
six-month period ended
30 September 2012
(in thousands of Share Share Retained Stock Foreign Total
US Dollars) capital premium earnings options currency equity
outstanding translation
reserve reserve
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 1
April 2011 5,581 105,047 (93,113) 8,196 (8,207) 17,504
Total comprehensive
income for the period
Loss for the period - - (5,520) - - (5,520)
Other comprehensive
income
Foreign currency
translation reserve - - - - (4,052) (4,052)
Total other comprehensive
income - - - - (4,052) (4,052)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income for the period - - (5,520) - (4,052) (9,572)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Transactions recorded
directly in equity:
Share-based payment
transactions - - - 2,219 - 2,219
- - - 2,219 - 2,219
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 30
September 2011 5,581 105,047 (98,633) 10,415 (12,259) 10,151
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 1
April 2011 5,581 105,047 (93,113) 8,196 (8,207) 17,504
Total comprehensive
income for the year
Loss for the year - - (12,796) - - (12,796)
Other comprehensive
income
Foreign currency
translation reserve - - - - (6,672) (6,672)
Total other comprehensive
income - - - - (6,672) (6,672)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Total comprehensive
income for the year - - (12,796) - (6,672) (19,468)
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Transactions recorded
directly in equity:
Share-based payment
transactions - - - 4,162 - 4,162
- - - 4,162 - 4,162
--------------------------- --------- --------- ---------- -------------- ------------- ---------
Balance as at 31
March 2012 5,581 105,047 (105,909) 12,358 (14,879) 2,198
--------------------------- --------- --------- ---------- -------------- ------------- ---------
(in thousands of Share Share Retained Stock options Foreign Total
US Dollars) capital premium earnings outstanding currency equity
reserve translation
reserve
--------------------------- --------- --------- ---------- -------------- ------------- --------
Balance as at 1 April
2012 5,581 105,047 (105,909) 12,358 (14,879) 2,198
Total comprehensive
income for the period
Loss for the period - - (5,489) - - (5,489)
Other comprehensive
income:
Foreign currency
translation reserve - - - - (772) (772)
Total other comprehensive
income - - - - (772) (772)
--------------------------- --------- --------- ---------- -------------- ------------- --------
Total comprehensive
income for the period - - (5,489) - (772) (6,261)
--------------------------- --------- --------- ---------- -------------- ------------- --------
Transactions recorded
directly in equity:
Share-based payment
transactions - - - 397 - 397
Option forfeited/lapsed
during the period - - 793 (793) - -
- - 793 (396) - 397
--------------------------- --------- --------- ---------- -------------- ------------- --------
Balance as at 30
September 2012 5,581 105,047 (110,605) 11,962 (15,651) (3,666)
--------------------------- --------- --------- ---------- -------------- ------------- --------
Notes to the Accounts
1. General and principal activities
Jubilant Energy NV ('the Company'or 'JENV') was incorporated on
12 June 2007, in Amsterdam, the Netherlands, as a company with
limited liability. The registered office of the Company is
Orlyplein 10, Floor 24, 1043 DP Amsterdam, the Netherlands. The
Company is a subsidiary of Jubilant Energy (Holdings) B.V. (JEHBV),
a Netherlands company, which in turn is a wholly-owned subsidiary
of Jubilant Enpro Private Limited ('Jubilant Enpro'), a company
incorporated under the laws of India. On 24 November 2010, the
Company commenced trading on Alternative Investment Market (AIM),
London.
The Condensed Consolidated Interim Financial Report of the Group
as at and for the six-month period ended 30 September 2012 comprise
the Company and its subsidiaries (together referred to as the
'Group' and individually as 'Group entity') and the Group's
proportionate interest in jointly controlled assets in
unincorporated joint ventures.
The Group is engaged in the exploration for and development and
production of oil and natural gas. It conducts many of its
activities jointly with others. This Condensed Consolidated Interim
Financial Report reflect only the Group's proportionate interest in
such activities.
2. Summary of significant accounting policies
The abbreviated consolidated financial information has been
derived from the Company's Condensed Consolidated Interim Financial
Report for the six month period ended 30 September 2012 and the
Company's Consolidated Financial Statements for the year ended 31
March 2012 which has been prepared in accordance with International
Accounting Standard (IAS) 34, "Interim Financial Reporting" and
International Financial Reporting Standards (IFRS) as adopted by
the EU respectively. These standards have been consistently applied
throughout the Group and in previous years. The Company's Condensed
Consolidated Interim Financial Report for the six month period
ended 30 September 2012 and the Company's Consolidated Financial
Statements for the year ended 31 March 2012 were authorised for
issue by the Board of Directors on 07 December 2012 and on 29 June
2012 respectively.
Basis of preparation
The abbreviated consolidated financial information, which
comprise the condensed statement of financial position as at 30
September 2012, the condensed statement of comprehensive income,
statement of changes in equity and cash flow statement for the six
month period then ended, and related notes, have been derived from
the Company's Condensed Consolidated Interim Financial Report for
the six months period ended 30 September 2012, and the Company's
Consolidated Financial Statements for the year ended 31 March 2012,
on which the Company's audit firm KPMG Accountants N.V. ("KPMG")
provided an unqualified review opinion dated on 07 December 2012,
and unqualified audit opinion dated on 29 June 2012
respectively.
For a better understanding of the Company's financial position
and results, we emphasize that the abbreviated consolidated
financial information should be read in conjunction with the
Company's Condensed Consolidated Interim Financial Report as of 30
September 2012 and for the six month period then ended and the
Company's Consolidated Financial Statements as of and for the year
ended 31 March 2012, from which the abbreviated consolidated
financial information was derived.
3. Loans and borrowings (including accrued interest)
(in thousands of US As at
Dollars)
30 September 31 March 30 September
2012 2012 2011
--------------------------- -------------- ---------- -------------
Financial liabilities
at amortised cost
Secured foreign currency
term loans 88,741 86,823 70,447
Secured term loans
from banks 256,949 263,513 217,634
12% Redeemable preference
shares 27,597 26,374 25,719
Others 20 36 54
Total 373,307 376,746 313,854
--------------------------- -------------- ---------- -------------
Current 20,661 16,051 5,478
Non-current 352,646 360,695 308,376
373,307 376,746 313,854
--------------------------- -------------- ---------- -------------
i. There has been no change in the terms and conditions of the
outstanding loans including securities from the financial year
ended 31 March 2012 except as detailed below :
ii. Movement during the current period
During the six months period ended 30 September 2012, JODPL
entered into a term loan agreement with a consortium of banks for a
total amount of INR 13,400,000 thousand (equivalent to USD 254,511
thousand) at an interest rate of SBI Base Rate plus 450 bps. This
loan shall be payable in 34 quarterly installments starting from 31
December 2015 and ending on 31 March 2024. The facility is
available for repayment of outstanding Rupee Loan to the existing
lenders, ongoing capital expenditure for appraisal and development
of the KG DDW Block, interest payable on the term loan prior to the
Scheduled Commercial Operations Date or Commercial Operations Date
whichever is earlier and payment of any other financing costs,
charges, expenses relating to the term loan. As per the sanction
letter, the loan is secured by the following securities:
- Charge on all present and future receivables of JODPL from KG block.
- Encumbrance over JODPL's participating interest in KG block.
- Encumbrance on all intangible assets of JODPL relating to KG block.
- Encumbrance over JODPL's rights under all material contracts relating to KG block.
- Encumbrance on the Debt Service Reserve Account to be created
to meet the debt service requirements.
- Non-disposal undertaking along with power of attorney in
respect of 51% of the total issued and paid-up shares of JODPL held
by JOGIL.
- Negative lien over all the preference shares of JODPL.
- A first ranking pledge of such issued and paid-up shares of
JENV held (directly) by JEHBV, having a market value of INR
2,000,000 thousand as on the date of Share Pledge Agreement. The
pledge of shares shall be released once the Commercial Production
commences from the Deen Dayal West Extension area.
- First ranking pari passu charge on Trust and Retention Account (TRA) of JODPL.
The Group is in the process of creating above mentioned
securities as on 30 September 2012.
As on 30 September 2012, JODPL has drawn down INR 1,694,000
thousand (equivalent to USD 32,175 thousand) and the same has been
utilised towards the part payment of existing outstanding term
loan. The earlier loan has been considered as extinguished and
accordingly, the unamortized loan origination cost of USD 130
thousand has been charged to the statement of comprehensive
income.
iii. There has been no change in Non-fund based facility from
the financial year ended 31 March 2012.
4. Related Parties
a) Related parties and nature of relationships where control exists
Relationship Name of related
parties
Ultimate holding company Jubilant Enpro
Private Limited
Holding company Jubilant Energy
Holding BV
b) Related parties and nature of relationships where
transactions have taken place during the year
Relationship Name of related parties
Fellow subsidiary Western Drilling Contractors
Private Limited
Enterprises that are directly 1) Jubilant Securities Private
or indirectly under the Limited
control or significant 2) Jubilant Capital Private
influence of key management Limited
personnel 3) Jubilant Life Science Limited
Joint venture of the ultimate Geo Enpro Petroleum Limited
holding company
Key management personnel 1) Shyam S Bhartia (Promoter
and Director)
2) Hari S Bhartia (Promoter
and Director)
3) Sir Robert Paul Reid
4) Arun Kumar Duggal
5) Dr. Andrew William Wood
6) Shahzaad S Dalal
7) Ajay Khandelwal
8) Vipul Agarwal
9) Ramesh Bhatia
10) Apoorva Ranjan
(c) Related party transactions
(in thousands Ultimate Holding Holding Company Joint venture
of US Dollars) Company of the ultimate
holding company
For the six-month For the six-month For the six-month
period ended period ended period ended
30 September 30 September 30 September
2012 2011 2012 2011 2012 2011
----- --------------- --------------------------- ------------------------ --------------------------- ------------------------------- ---------------------------------- ---------------------------------
(i) Transactions:
Share of joint
operative
expenditure
paid - - - - 4,686 4,082
Expenses incurred
by the Group
on their behalf - - 36 - 317 -
Bank charges 251 - - - - -
and guarantee
commission
Expenses incurred
on behalf
of the Group 7 - - 15 4,698 4,087
Interest on
redeemable
preference
shares 1,507 1,355 - - - -
Repayment - 26 - - - -
to creditors
Joint venture
(in thousands Ultimate Holding of the ultimate
of US Dollars) Company Holding Company holding company
As at As at As at
--------------------------------------------------------------------------- ----------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------
30 31 March 30 30 31 March 30 30 31 March 30
Sept 2012 Sept Sept 2012 Sept Sept 2012 Sept
2012 2011 2012 2011 2012 2011
------ --------------- ------------------------ --------------------- -------------------------- --------------------------- ------------------------------- --------------------------- ---------------------------------- --------------------------------- ----------------------------
(ii) Balances
outstanding
Trade
and other
receivables
(loans
and advances
recoverable) 695 705 739 - - - 112 266 3
Trade
and other
payables 492 241 - 365 432 480 - - -
Redeemable
preference
shares 27,597 26,374 25,719 - - - - - -
---------------------- ------------------------ --------------------- -------------------------- --------------------------- ------------------------------- --------------------------- ---------------------------------- --------------------------------- ----------------------------
(in thousands of Fellow Subsidiary Enterprises that
US Dollars) are directly or
indirectly under
the control or significant
influence of key
management personnel
For the six months period ended 30
September
--------------------------------------------------------------------------------------------------------------------
2012 2011 2012 2011
----- --------------- ---------------------------- ------------------------- ---------------------------- -----------------------------
(i) Transactions:
Loans and
advances
given - - - 694
Expenses
incurred
on behalf of
the
Group - - - 51
(in thousands of Fellow Subsidiary Enterprises that
US Dollars) are directly or indirectly
under the control
or significant influence
of key management
personnel
As at As at
------------------------------------------------------------------------------- ----------------------------------------------------------------------
30 Sept 31 March 30 Sept 30 Sept 31 March 30 Sept
2012 2012 2011 2012 2012 2011
------ --------------------- --------------------------- ----------------------- ------------------------- --------------------- ------------------------- --------------------
(ii) Balances outstanding
Trade and other
receivables
(loans and advances
recoverable) 2 2 2 11,460 11,611 12,184
---------------------------- --------------------------- ----------------------- ------------------------- --------------------- ------------------------- --------------------
c) There is no change in guarantees/securities given by related
parties in respect of performance of blocks/loans taken by the
Group as compared to 31 March 2012, except for the following:
i. During the six months period ended 30 September 2012, the
bank has issued performance guarantee in respect of Golaghat block
amounting to USD 2,085 thousand on behalf of Jubilant Securities
Private Limited against a lien on the term deposits of JENVPL
amounting to USD 104 thousand.
ii. With regard to loans refer to note 3 (ii).
5. Contingencies
There are no significant changes in the contingencies other than
those disclosed in the consolidated financial statements as at and
for the year ended 31 March 2012 except for the following
matters:
i. Jubilant Energy Kharsang Private Limited (JEKPL):
- The Operator had entered into a contract with Geophysical
Institute of Israel (GII) for acquisition, processing and
interpretation (API) of 3D seismic data of Kharsang oilfield area.
During the financial year 2009-10, GII has filed a claim of USD
3,112 thousand (JEKPL's share USD 778 thousand) with interest
against the Operator before the Arbitration Tribunal for remaining
portion of job completed, damages and theft of their equipments,
loss due to non-availability of TDS certificates, payment of
performance bonds and reimbursement of various administrative
costs, etc. The claim is disputed by the Operator due to
non-performance of entire 3D seismic project by GII in accordance
with Contract provisions and also most of the claims are out of
contractual provisions and hence not payable.
The Operator has also filed a counter claim of around USD 2,104
thousand (JEKPL's share USD 526 thousand) for loss suffered due to
non-completion of entire 3D seismic project in accordance with
Contract provisions. Pending resolution, the Operator has not
acknowledged and accounted for the claim amounting to USD 2,784
thousand (net of performance guarantee amount of USD 328 thousand)
plus interest as liability.
The Arbitration Tribunal has given an award on 30 July 2012
against the Kharsang PSC consortium in which liability is assessed
at USD 1,796 thousand (JEKPL's share USD 449 thousand) including
interest. The Operator has filed an appeal against the order of
Arbitration Tribunal before hon'able High Court which has been
admitted. Considering the facts and current status of the case, the
Operator is confident that there is no likelihood of any liability
devolving on the Kharsang PSC consortium in this matter. Therefore,
no provision for the same has been made in the books of
account.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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