Page 17 - AsianOil Week 16

AsianOil
NEWS IN BRIEF
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Basin and the cessation of production from the Minerva gas field in September 2019.
COOPER ENERGY, April 21, 2020
Oil Search provides quarterly update
2020 first quarter production net to Oil Search was 7.37 million barrels of oil equivalent (mmboe), up 5% from the fourth quarter
of 2019. The PNG LNG Project contributed 6.35 mmboe, while Oil Search-operated fields produced 1.02 mmboe, including 0.65 mmbbl from the PNG oil fields, 91% higher than the prior quarter, 0.31 mmboe of gas and liquids production from the Hides GTE Project and 0.07 mmboe of gas exported to the PNG LNG Project from the SE Gobe field.
Total hydrocarbon sales were 6.87 mmboe, lower than production primarily due to the timing of LNG shipments. Total sales revenue from LNG, gas, oil and condensate for the quarter declined 19% to US$351.1 million, reflecting lower realised oil and LNG prices and product sales volumes. Other revenue, comprising rig lease income, infrastructure tariffs, electricity, refinery and naphtha sales, declined from US$11.1 million to US$8.2 million.
The average oil and condensate price realised during the quarter was US$49.51 per barrel, 20% lower than in the previous quarter, reflecting
the steep decline in global oil prices from early March. The average price realised for
LNG and gas sales decreased 4% to US$9.08 per mmBtu, significantly less than the drop in
oil prices due to the two-to-three-month lag between the spot oil price and LNG contract prices. The Company did not undertake any hedging transactions during the period and remains unhedged.
At 31 March 2020, Oil Search had liquidity of US$1.15 billion, comprising US$670.6 million in cash (US$396.2 million at the end of the prior quarter) and US$480.6 million in undrawn corporate credit facilities. Oil Search ended the period with US$3.65 billion of debt outstanding, of which US$2.94 billion related to the PNG LNG project finance facility and US$715.0 million to corporate credit facilities. Cash outflows during the quarter included a dividend payment of US$68.6 million.
OIL SEARCH, April 21, 2020
Santos provides quarterly update
Strong operational performance delivered US$265 million of free cash flow in the first quarter. Targeting 2020 free cash flow breakeven oil price of US$25 per barrel. Liquidity of
over US$3 billion at the end of the quarter, comprising US$1.15 billion in cash after payment of the 2019 final dividend in March and US$1.9 billion in committed undrawn debt facilities. Net debt was US$3.1 billion, including ~US$400 million in AASB16 lease liabilities, and gearing was 29%
Cooper Basin gas production was the highest in nine years driven by strong flow rates from new wells. The Cooper Basin produced at an annualised rate of 17.6 mmboe in the quarter,
achieving the 2025 production growth target range ahead of expectations. GLNG produced at an annualised rate of 6.4 mtpa in the quarter. 112 new wells drilled across Santos’ operated onshore assets despite significant wet weather impacts.
First quarter production of 17.9 mmboe was 4% lower than the prior quarter, primarily due to an unplanned domestic gas customer outage in Western Australia and the impact of Cyclone Claudia, partially offset by stronger Cooper Basin and Queensland-operated onshore production. Approximately 70% of forecast production volumes for the remainder of 2020 are fixed-price, comprising: Fixed-price domestic gas sales contracts, and 14 million barrels of oil hedged at an average floor price of US$39/bbl with upside participation
SANTOS, April 23, 2020
Triangle confirms three key opportunities in Perth Basin
Experienced Perth Basin oil producer Triangle Energy (Global) has completed its Cliff
Head Renewal Project (CHRP), identifying three key opportunities that could be drilled and developed from the existing Cliff Head Alpha platform, and two new longer-term development prospects.
Triangle has also updated its assessment of unrisked Contingent Resources and Prospective Resources for the Cliff Head Project.
Three priority drilling targets have been advanced through the Cliff Head Renewal Project (first announced on 29 August 2019), of which the Mentelle Updip prospect has the potential to materially impact the life-cycle of the Cliff Head asset, while West High and SE Nose could also provide a significant uplift in production.
Triangle Managing Director Mr Rob Towner said the next steps would be to commence detailed well planning, with a drilling campaign targeted when appropriate.
“It is pleasing that our work completed over the last 12 months or more has lead us to a point where we have three clearly defined, attractive, drilling opportunities,” Mr Towner said.
“The next steps for us are to commence the detailed well planning to execute these wells, within the constraints of the current oil price and industry down-turn.
“These drilling opportunities provide a cause for optimism for the long-term future of the Cliff Head asset.
“The work we have done for the Cliff Head Renewal Project gives us a clear picture of how the under-explored Perth Basin could
be developed around existing infrastructure, extending the life of the Cliff Head project.” TRIANGLE ENERGY, April 23, 2020
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