RNS No 5703q
SODRA PETROLEUM AB
20 May 1999
SODRA PETROLEUM AB
Sodra Petroleum AB announces that its parent company, Lundin Oil AB ("Lundin")
has today issued the following announcement:-
Lundin Oil AB (publ)
Report for the first 3 months
1 January 1999 - 31 March 1999
RESULT AND CASH FLOW
The Group
The Lundin Oil AB Group (Lundin Oil) reports a loss after taxes of MSEK 2.1
(MSEK 16.8) corresponding to -0.03 (-0.21) SEK per share for the first three
months of 1999. The profit before taxes was MSEK 2.6 (MSEK 7.7).
Operating cash flow was MSEK 62.6 (MSEK 63.2) corresponding to 0.77 (0.78)
SEK/share. The operating cash flow has been negatively impacted by lower oil
prices and positively impacted by lower current Petroleum Revenue Tax as
compared to last year.
Lundin Oil received an average price on its crude oil sales of USD 11.31 (USD
14.18) per barrel for the first three months. The average price for 1998 was
USD 12.89 per barrel.
Oil and gas related income amounted to MSEK 112.6 (180.4) and relates to
Lundin Oil's assets in the UK North Sea and Malaysia which generated operating
income of MSEK 86.0 (140.4) and MSEK 25.3 (37.7) respectively. The reduction
as compared to last year relates primarily to lower oil prices and to
movements in inventory. Depletion charge on oil and gas assets was MSEK 57.1
(60.0).
Net financial income and expenses were MSEK 5.5 (-0.6). Included were gains of
MSEK 8.4 resulting from the sale of 669,480 shares in Talisman Energy
Corporation for proceeds of MSEK 97.1. Also included were interest expenses
amounting to MSEK 10.9 (10.3) and net currency exchange gains of MSEK 8.9
(7.3). The latter arose primarily as a result of translating loans from USD
to SEK.
Taxes were MSEK -4.3 (-25.3). Corporation taxes reduced in line with lower
oil prices to MSEK -7.0 (-8.2). Petroleum Revenue Tax, PRT, amounted to a
credit of MSEK 2.7 (-17.1). The credit for the first quarter of 1999 is due
to a one-offadjustment to the second half of 1998 of MSEK 4.8. The PRT charge
for the current period amounted to MSEK -2.1.
The net loss for the financial year ended 31 December 1998 was MSEK 370.4.
Parent Company
The net profit for the parent company for the first three months of 1999
amounted to MSEK 1.9 (net loss MSEK -10.48). The profit was primarily due to
the gain on sale of of the company's shares in Talisman of MSEK 7.2.
PRODUCTION
Production for the first three months on a working interest basis amounted to
1 275 604 (1 264 964) barrels of oil equivalents of which 1 178 811 (1 137
927) were barrels of oil. This corresponds to a production of 14 173 (14 055)
barrels of oil equivalents per day (boepd) for the quarter including
production from the UK North Sea and Malaysia of 9 001 (9 009) boepd and 4
840 (5 046) boepd respectively. Production for the first three months from
Malaysia on an entitlement basis after government share amounted to 311 797
(322 420) barrels.
FINANCING AND LIQUIDITY
Liquid assets at 31 March 1999 amounted to MSEK 127.7 (228.6).
INVESTMENTS
During the period, investments in oil and gas assets have been made in an
amount of MSEK 78.3 (MSEK 282.5). These primarily relate to ongoing
exploration / appraisal costs in Libya.
OPERATIONS
Libya
The new information obtained from the two appraisal wells has been included
and incorporated into the Field Development Plan that was submitted to the
National Oil Corporation in March 1999. A third party certified reserves study
for the En Naga North and West field has been completed by Sproule
International Limited which concluded that the En Naga North and West field
contains unrisked proven and probable reserves of 71 million barrels.
The development concept currently envisaged is targeted at achieving a
production rate of approximately 12,500 BOPD, within 12 months of the approval
of the Field Development Plan (expected in the fourth quarter of 1999). Peak
production is currently estimated to reach 22,000 BOPD.
The company has finalised the interpretation of the newly acquired seismic and
defined the next exploration drilling location on the Haruj A prospect 30 km
south of the En Naga discovery. Exploration drilling is anticipated to resume
in September 1999.
In April 1999 the Libyan United Nations sanctions were suspended resulting in
an improved environmnet for investment and operations in the Libyan oil
industry.
Sudan
Lundin Oil has a 40.375% interest in Block 5A in the Sudan. The Block adjoins
the Greater Nile Petroleum Operating Company ("GNPOC") blocks on which the oil
reserves discovered to date are reported to be in the order of 800 million
barrels recoverable. The GNPOC consortium are also reportedly close to first
oil production through the 1,540 kilometres export pipeline to Port Sudan. The
initial capacity of the pipeline is 250,000 barrels per day, of which 100,000
barrels per day is reserved for third party users such as Lundin Oil
In April 1999 Lundin spudded its first exploration well on the Thar Jath
prospect. The exploration well has established a significant new oil discovery
following the completion and logging of the well. The well has drilled to a
depth of 1,820 metres. Due to the rainy season and associated logistical
difficulties, the testing of the well has been postponed until the
commencement of next year's dry season at the end of 1999. Petrophysical
analysis of the primary Bentiu and Aradeiba sandstone reservoirs indicates a
substantial net pay interval which is further supported by excellent oil and
gas shows and an oil gradient from RFT pressure samples. Reservoir quality
appears to be excellent from both electric log and sample analysis.
Malaysia/Vietnam
Lundin Oil holds a 41.44% interest in, and operates, Block PM3, the Commercial
Arrangement Area between Malaysia and Vietnam (the "PM3 CAA") on behalf of its
partners; Petronas Carigali Sdn Bhd (46.06%) and PetroVietnam Exploration and
Production (12.5%).
At the end of the first quarter, daily gross production was approximately
13,000 bopd from Phase 1. The Company is currently investigating
opportunities to drill further development wells on Bunga Kekwa and to
initiate further incremental oil projects, both of which would increase
current Phase 1 production rates.
During the period the Company announced the deferment of Phase 2 of the PM-3
CAA oil and gas development primarily due to the low oil price environment.
The Company is in close consultation with Petronas, PetroVietnam and its
partners with a view to agreeing a new timetable for Phase 2.
RED SEA OIL CORPORATION
Lundin owns approximately 58% of the outstanding share capital of Red Sea Oil
Corporation ("Red Sea").
In May 1999 Red Sea announced the terms of a previously announced rights issue
to raise C$43.6 million. Lundin has indicated that it will take up its rights
in full at a cost of C$25.4 million thereby maintaining its 58% interest in
Red Sea, assuming the rights issue is fully subscribed. Lundin will be repaid
the majority of its outstanding loan to Red Sea out of the proceeds of the
rights issue.
SHARE DATA
The company's share capital at 31 March 1999 amounts to SEK 40,506,476.50
represented by 81,012,953 shares of nominal value SEK 0.50 each. The shares
are divided into 678,200 A shares with 10 votes each and 80,334,753 B shares
with one vote each.
The following warrants were outstanding as at 31 March 1999:
* 3,400,000 warrants with an excercise price of SEK 0.50 expiring in
November 2001, to Sodra Petroleum AB
* 1,250,000 incentive options, under the Group incentive program for
employees, with a strike price of SEK 49 expiring on 15 May 2001.
In addition on 30 March 1999 an EGM decided to issue warrants free of charge
to the shareholders of the company as per the record date April 12, 1999. One
warrant was issued for ten shares held. A total of 8 102 000 warrants were
issued. The warrants run until 31 March 1999. One warrant entitles the
holder to subscribe for one newly issued share of series B of the company.
Subscription can take place during two periods: At a price of SEK 23 for each
newly issued share between 1 October and 15 October 1999 or at a price of SEK
28 between 10 January and 31 March 2000. If all warrants are exercised the
Company will receive new issue proceeds of between MSEK 188.6-229.6 depending
on the strike price at which subscription occurred.
On 12 March 1999 the Board of Directors decided and announced that under the
incentive program a new series of warrants to qualified employees would be
issued. This new series of warrants is subject to approval of the AGM on 20
May 1999.
KEY FINANCIAL RATIOS
1 Jan 1 Jan 1 Jan
1999- 1997- 1998-
31 Mar 31 Mar 31 Dec
1999 1998 1998
3 months 3 months 12 months
Key Financial Ratios
Return on capital employed1, % (0.2) (1.1) (27.0)
Return on total assets2, % 0.5 0.3 (20.7)
Equity ratio3, % 58.8 58.8 49.2
Shareholders' equity SEK per 15.9 18.4 15.6
share4
Operating cash flow SEK per 0.77 0.78 3.1
share5
Earnings SEK per share6 0.0 (0.2) (4.6)
Number of shares at the period 81,012,953 81,012,953 81,012,953
end
Weighted average number of 85,638,493 81,012,953 81,012,953
shares for the period
Definitions
1 Return on capital employed is defined as the Group's net result divided by
the average capital employed (the average of the net assets for the financial
period).
2 Return on total assets is defined as the Group's result after financial
items plus interest expenses plus/less exchange differences on financial
loans divided by the average total assets (the average total assets less non-
interest bearing liabilities for the period)
3 Equity ratio is defined as the Group's shareholders' equity including
minority interest in relation to total assets.
4 Shareholders' equity SEK per share is defined as the Group's shareholders'
equity divided by the number of shares at the period end.
5 Operating cash flow SEK per share is defined as the Group's operating income
less production costs and less current taxes divided by the weighted average
number of shares for the period.
6 Earnings SEK per share is defined as the Group's net result divided by the
weighted average number of shares for the period.
GROUP INCOME STATEMENT IN SUMMARY
1 Jan 1 Jan 1 Jan
Expressed in TSEK 1999- 1998- 1998-
Note 31 Mar 31 Mar 31 Dec
1999 1998 1998
3 months 3 months 12 months
Operating income
Net sales of oil and gas 98,429 158,953 488,255
Tariff income 12,834 19,134 62,062
Service income 1,361 2,300 8,702
----------------------------
112,624 180,387 559,019
Operating expenses
Production costs 1 (43,937) (94,014) (274,006)
Depletion of oil and gas (57,106) (60,000) (227,564)
properties
Site restoration charges (818) (1,257) (4,168)
Write-off of oil and gas
properties - (305) (242,540)
---------------------------
Gross profit (loss) 10,762 24,811 (189,259)
---------------------------
Other income 1,543 1,554 7,947
Administration expenses (15,184) (18,072) (83,738)
---------------------------
Operating profit (loss) (2,879) 8,293 (265,050)
Financial income and
expenses, net 5,486 (566) (178,234)
---------------------------
Profit (loss) before tax 2,607 7,727 (443,284)
Tax 2 (4,260) (25,299) (40,796)
Minority interests (496) 743 113,646
---------------------------
Net result (2,149) (16,829) (370,434)
GROUP BALANCE SHEET IN SUMMARY
Expressed in TSEK Note 31 Mar 31 Mar 31 Dec
1999 1998 1998
ASSETS
Tangible fixed assets
Oil and gas properties 3 2,100,910 1,929,310 2,001,424
Other fixed assets 9,132 8,183 9,693
------------------------------
Total tangible fixed 2,110,042 1,937,493 2,011,117
assets
Financial fixed assets 4 50,050 333,512 50,666
------------------------------
Total fixed assets 2,160,092 2,271,005 2,061,783
Current Assets
Current receivables and 141,561 182,330 212,816
inventories
Cash and bank,
short term investments 127,675 228,570 153,986
----------------------------
Total current assets 269,236 410,900 366,802
----------------------------
Total assets 2,429,327 2,681,905 2,428,585
SHAREHOLDERS' EQUITY
AND LIABILITIES
Shareholders' equity
including net result for 1,286,905 1,487,429 1,261,921
the financial period
Minority interests 141,929 89,431 138,451
Provisions and long-term 799,419 753,684 758,862
liabilities
Current liabilities 201,074 351,361 269,351
----------------------------
Total shareholders' equity
and liabilities 2,429,327 2,681,904 2,428,585
Pledged assets 5 940,787 1,055,928 930,134
Contingent liabilities 378 528 378
GROUP CASH FLOW STATEMENT IN SUMMARY
1 Jan 1 Jan 1 Jan
Expressed in TSEK 1999- 1998- 1998-
31 Mar 31 Mar 31 Dec
1999 1998 1998
3 months 3 months 12
months
Cash flow from operations
Net result (2,149) (16,829) (370,434)
Adjustment for depletion and
other non cash related items 49,984 64,046 529,246
Changes in working capital (101,840) 31,756 (8,987)
----------------------------
Total cash flow from operations (54,005) 78,972 149,825
Investment in oil and gas (78,285) (282,850) (777,982)
properties
Investment in other fixed assets (578) (874) (6,664)
Investment in other shares - (3,256) -
Sale of other shares 97,062 - 36,109
Other (432) - (13,468)
---------------------------
Total cash flow used for 17,767 (286,980) (762,005)
investments
Increase in long-term 12,344 161,036 191,956
liabilities
Proceeds from share issues - 3,141 306,940
Decrease in long term assets - 3,674 -
---------------------------
Total cash flow from financing 12,344 167,850 498,896
Other (18,794) 1,953 497
----------------------------
Change in cash and bank (42,688) (38,205) (112,787)
----------------------------
Note 1. 1 Jan 1999- 1 Jan 1998- 1 Jan 1998-
Production costs, 31 Mar 31 Mar 31 Dec
TSEK 1999 1998 1998
Costs of (42,518) (44,737) (163,227)
operations
Tariff costs (18,922) (19,620) (88,009)
United Kingdom
royalty (1,350) (4,914) (11,821)
Changes in
inventories and
underlift/overlift
position 12,853 (24,743) 10,949
-----------------------------
(49,937) (94,014) (274,006)
Note 2. Tax 1 Jan 1999- 1 Jan 1998- 1 Jan 1998-
TSEK 31 Mar 31 Mar 31 Dec
1999 1998 1998
The tax charge
comprises
Corporation tax
- current (8,814) (9,016) (17,992)
- deferred 1,821 781 (5,004)
----------------------------
(6,993) (8,235) (22,996)
PRT (Petroleum
revenue tax)
- current 2,733 (14,142) (18,976)
- deferred - (2,922) 1,176
----------------------------
2,733 (17,064) (17,800)
----------------------------
Total charge to (4,260) (25,299) (40,796)
income
Note 3. Oil and Book Book Book value
gas properties, value value 31 Dec
TSEK 31 Mar 31 Mar 1998
1999 1998
United Kingdom 940,787 1,055,928 930,134
Malaysia 473,871 354,613 471,506
Libya 437,926 236,760 392,086
Falkland 19,166 72,703 -
Islands
Sudan 175,070 137,746 159,633
Papua New 34,668 31,268 33,231
Guinea
Others 3,794 6,910 3,377
Albania 15,628 0 11,457
Tanzania - 33,382 -
---------------------------------
2,100,910 1,929,310 2,001,424
Note 4. Financial fixed assets includes shares in Khanty Mansiysk Oil
Corporation and deferred financing fees.
Note 5. Pledged assets represent the UK North Sea assets.
PARENT COMPANY INCOME STATEMENT IN SUMMARY
1 Jan 1999- 1 Jan 1 Jan
Expressed in TSEK 31 Mar 1999 1998- 1998-
3 months 31 Mar 31 Dec
1998 1998
3 months 12 months
Other income 116 88 1,245
Administration expenses (3,254) (3,346) (22,092)
---------------------------
Operating loss (3,138) 3,528 (20,847)
Financial income and 5,124 ( 7,509) (146,495)
expenses, net ---------------------------
Result before tax 1,986 (10,767) (167,342)
Tax - - (425)
---------------------------
Net result 1,986 (10,767) (167,767)
PARENT COMPANY CASH FLOW STATEMENT IN SUMMARY
1 Jan 1 Jan 1 Jan
Expressed in TSEK 1999- 1998- 1998-
31 Mar 31 Mar 31 Dec
1999 1998 1998
3 months 3 months 12
months
Cash flow from operations
Net result 1,986 (10,767) (167,767)
Adjustment for depletion and
other non cash related items (7,083) 110 125,923
Changes in working capital (55,683) 11,606 37,624
--------------------------
Total cash flow from operations (60,780) 949 (4,220)
Investment in other fixed assets - (241) (460)
Investment in shares in - (3,642) (44,365)
subsidiaries
Sale of other shares 73,519 - 38,463
--------------------------
Total cash flow used for 73,519 (3,883) (6,362)
investments
Proceeds from share issue - 3,141 3,141
Total cash flow from financing - 3,141 3,141
Change in cash and bank 12,739 207 (7,441)
--------------------------
Stockholm, 20 May 1999
Ian H. Lundin
President
For further information, please contact:
Magnus Nordin or Ashley Heppenstall Tel: +46 8 440 54 50
Sodra Petroleum AB
Judith Parry/Simon Rothschild Tel: 0171 256 5756
Millham Communications
Notes to editors
1. Lundin is the parent company of Sodra by virtue of its holding of
40,506,500 Ordinary Shares of SEK0.50 each. The 40,506,476 Convertible Shares
of SEK0.50 each in Sodra listed on the AIM market are effectively convertible
into the right to subscribe for B Shares in Lundin in November 2001. Upon
exercise of the conversion right, for every 12 Convertible Shares, the holder
will receive a warrant to subscribe for 1 new Lundin B Share at the nominal
price of SEK0.50.
2. Convertible Shares in Sodra are also listed on the New Market of the
Stockholm Stock Exchange. Lundin B Shares are currently quoted on the
Stockholm Stock Exchange, Toronto Stock Exchange and the Nasdaq National
Market.
END
QRFBUGBUUXDCCCG
Spg Media (LSE:SPM)
Historical Stock Chart
From May 2024 to Jun 2024
Spg Media (LSE:SPM)
Historical Stock Chart
From Jun 2023 to Jun 2024
