Ruspetro announce preliminary unaudited results for the year ended 31 December 2012

Monday, March 18, 2013
  • 97% increase in revenues year on year at US$76.23 million (net of export duty).
  • Current production at 6,374 boepd, of which 1,335 boepd is condensate.
  • In light of the commercial gas agreement, Ruspetro is currently undertaking a review of its development plan.

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, announces today its results for the full year ended 31 December 2012 and an update on its operations to date.

Key Highlights

  • 97% increase in revenues year on year at US$76.23 million (net of export duty)
  • Full year EBITDA of -negative US$6.2 million, EBITDA for Q4 2012 positive at US$2.4 million
  • Proved reserves up 35% to 234 million boe (31 December 2012). Including 32 million boe increase in oil and condensate reserves and 29 million boe of commercial gas reserves
  • Proved and probable gas reserves of 153 million boe
  • Average 2012 production up 81% over 2011 at 4,639 boepd
  • Net debt of US$335.9 million at year end, with US$34.4 million of cash

Post-period update

  • Current production at 6,374 boepd, of which 1,335 boepd is condensate

    • February average production was 5,930 boepd, of which 1,417 boepd was condensate
    • Current gas production of 9,400 boepd excluded and not currently available for sale

  • In order to monetize its newly discovered gas reserves, the Company has signed an "Agreement of Intent" to supply OJSC Fortum with dry gas for eight years with a sales value of up to US$700 million from the second half of 2014. OJSC Fortum, a subsidiary of a leading Finland based electricity generator, is an electricity utility with a 1,200 MW power plant in Nyagan (which is 100km north of Ruspetro's field). The Company is designing a gas processing plant with a sales pipeline and is in discussions with third parties as to the required project financing for this plant.
  • As at 28 February 2013, the Group had US$20 million of cash and will require additional financing to further field development and to achieve significant and sustained production increases. As at the date of this statement, the Company is in discussions with existing lenders as to additional financing and the extension of debt maturity beyond May 2015.

Outlook

  • In light of the commercial gas agreement, Ruspetro is currently undertaking a review of its development plan
  • Crude oil and condensate drilling to continue using fit for purpose completion technologies
  • Waterflood operations to be expanded
  • Gas business to be developed


2012
2011
Change
Revenue (US$m)
76.23
38.72
+97%
Well head revenue per barrel (US$/boe)
24.50
19.83
+24%
Oil and condensate production, total (boe)
1,697,950
935,003
+82%
Average production (boe)
4,639
2,560
+81%
Proved reserves (mmboe)
234
173
+35%
Probable reserves (mmboe)
1,604
1,372
+17%

Don Wolcott, chief executive, commented:

"Over the course of the year we have faced some significant challenges. We are clearly disappointed not to have met our production targets to date but we have implemented a number of initiatives which have had a beneficial impact on the business and led to a positive EBITDA in the final quarter. While the development of our field is at an early stage, we have successfully increased our proved reserves base and are developing a significant gas business validated by the recent signature of an Agreement of Intent to supply dry gas with an expected sales value of USD $700million over the period of the Agreement. We are currently developing a plan to build production and we are working with our lender to arrange the required financing."


Article Tags

RusPetro Russia Russia FSU Finance Operations Update Production Update


This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More


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