OKEA ASA posted its all-time excessive internet manufacturing of 42,100 barrels of oil equal per day (boepd) within the first quarter.
The manufacturing was largely pushed by Statfjord space actions, OKEA stated in its most up-to-date earnings launch. The corporate’s operated belongings proceed to carry out effectively with extra volumes at Draugen from Hasselmus, it stated.
OKEA famous that manufacturing from Yme, Ivar Aasen, and Nova was secure all through the quarter, whereas manufacturing at Gjøa was decreased following the closing of 1 effectively on account of sand manufacturing.
OKEA reported working earnings of $310 million (NOK 3.474 billion) and EBITDA of $190 million (NOK 2.159 billion) within the first quarter. The corporate acknowledged an impairment cost of $14.2 million (NOK 158 million), composed of $23.36 million (NOK 260 million) of goodwill impairments from Statfjord, partly offset by $9.17 million (NOK 102 million) in reversal of earlier impairments at Yme.
The corporate’s exploration and analysis bills totaled $4.49 million (NOK 50 million). Common and administrative bills amounted to $3.68 million (NOK 41 million) and characterize OKEA’s share of prices after allocation to license actions, in accordance with the discharge.
OKEA’s 2024 manufacturing steerage stays unchanged at 35,000 to 40,000 boepd. It elevated its capital expenditure steerage for the 12 months to $290 million to $330 million (NOK 3.2 billion to three.7 billion) following the funding resolution for the Bestla improvement venture in March.
OKEA, DNO ASA, and their companions earlier made a closing funding resolution (FID) on the Bestla improvement within the northern North Sea. The sphere is estimated to comprise 24 million barrels of oil equal gross in recoverable reserves and will probably be developed as a tie-back to the Brage area. PL740 is situated 8.1 miles (13 kilometers) south of the Brage area.
“The all-time excessive manufacturing within the quarter follows from the Statfjord acquisition together with continued robust efficiency significantly from our operated belongings,” OKEA CEO Svein Liknes stated.
OKEA in January accomplished its acquisition of a 28 p.c working curiosity in PL037, or the Statfjord Space, from Equinor Vitality AS for an preliminary mounted consideration of $220 million after suspending the unique goal completion date of November 30, 2023.
“At Statfjord we’re collaborating carefully with the operator to enhance manufacturing. In March, an funding resolution was made for the Bestla area. Bestla is estimated to carry 24 million barrels of oil equal in recoverable reserves and will probably be developed as a tie-back to the Brage area. With OKEA as operator for each licenses, it will improve synergies and economies of scale for each fields,” Liknes continued.
“[W]e are considering a brand new USD 125 million four-year senior secured bond to strengthen liquidity and improve monetary flexibility forward of investments within the Bestla improvement,” he said.
Internet proceeds from the contemplated bond challenge will probably be used to fund deliberate investments on the just lately sanctioned Bestla improvement and basic company functions, OKEA stated.
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