Arawak Energy Limited, formerly Arawak Energy Corporation, the independent oil and gas company with exploration, development and production in Kazakhstan, Russia and Azerbaijan, today announces its results for the quarter ended 30 June, 2008.
HIGHLIGHTS*
Financial:
• Revenue of $95.6 million in the second quarter of 2008, compared with $66.6 million in the first quarter (Q2 2007 $30.7 million)
• Net income in the second quarter of 2008 increased to $9.3 million (Q2 2007, $0.3 million) after deducting re-domiciliation and listing expenses of $8.7 million
• Earnings per share (basic and diluted) increased to 5.3 cents (Q2 2007, 0.2 cents)
• Funds from operations up 180% to $20.3 million in the second quarter of 2008 (Q2 2007 $7.2 million), with capital expenditure of $20.6 million excluding acquisitions
• Signed an $80 million financing facility with Calyon to facilitate further growth
Corporate:
• Acquired the Tamdykol exploration block and a 40% interest in the producing Saigak field, both in Kazakhstan
• Completed additional listing on the Official List of the London Stock Exchange on 1 July, 2008
• Acquired a 4.5% stake in PetroNeft Resources plc through an equity placing
Operational:
• Average production up 30% to 12,199 boepd year-on-year (Q2 2007, 9,404 boepd)
• Eight major geological projects under way already in 2008 in Kazakhstan, Russia and Azerbaijan
• New Karsak facility in Kazakhstan commissioned in May 2008, enabling the Company to produce and transport oil from Besbolek, Karataikyz and Alimbai to the pipeline system independently of third parties with reduced losses and savings in processing costs amounting to an overall saving of approximately $5 per barrel
• Further drilling success in the North Irael block in Russia which extends the boundaries of the oil producing areas
Commenting on the results, Alastair McBain, Chief Executive Officer, said:
“Arawak had an excellent first half of 2008 making good operational and financial progress and successfully expanding our asset base. With strong earnings and cash flows, we are looking to develop our exposure to the rich hydrocarbon reserves within our three core areas, Kazakhstan, Russia and Azerbaijan. The completion of our London listing complements our established listing in Toronto and will allow us to develop twin bases of institutional investor support in these two important markets.”
*In US dollars unless otherwise stated
