Page 19 - LatAmOil Week 38

LatAmOil NEWS IN BRIEF LatAmOil

Interim results: In light of delays caused by the loss for the period. regasification capacity is 20 mcm per day (at 1
COVID-19 epidemic, President will publish its Financial outlook: The industry slowdown atm and 20 degrees Celsius) and is in the process
half year report for the period ended June 30, has meant that some costs [that] were expected of obtaining new licenses and permits to expand
2020, on or around October 30, 2020. to be incurred in the current year have been capacity to 30 mcm per day (at 1 atm and 20
President Energy, September 22 2020 delayed and the Group has sufficient cash degrees Celsius).
resources to continue for a period of at least 12 The terminal’s integrated gas pipeline is 15
Argos Resources releases months from the date these financial statements km long, 10 km underwater and 5 km on land,
and 28 inches (711 mm) in diameter, connect-
were signed. In order to continue as a going con-
interim report for 2020 cern beyond that the Company will need to raise ing TR-BGUA to the Campos Elíseos reception
station, where the interconnection with the inte-
further finance.
AIM-listed Argos Resources, the Falkland Argos Resources, September 18 2020 grated network of transportation pipelines takes
Islands-based company focused on the North place.
Falkland Basin, has announced its interim Petrobras hits LNG Petrobras, September 17 2020
financial results for the six months ended June
30, 2020. Argos holds a 100% interest in Licence regasification record
PL001, which covers approximately 1,126 square INVESTMENT
km in the North Falkland Basin. The licence Petrobras informs that it has successfully con-
boundary is just 3 km from the Sea Lion oil field, cluded the operation test with a flowrate of 30mn Petrobras reports on
a significant discovery currently being consid- cubic metres per day of natural gas, held at the
ered for development. Guanabara Bay (TR-BGUA) liquefied natural BR stock sale offer
Highlights: $192,000 loss for the period (H1- gas regasification terminal in Rio de Janeiro,
2019: loss of $176,000); $560,000 cash reserves becoming the new world record for regasifica- Petrobras, in relation to the news published
at June 30, 2020 (year-end 2019: $768,000). The tion with Floating Storage and Regasification in the media, reiterates that it has not yet been
current Second Phase of the Licence expires in Unit (FSRU). defined the moment to launch the secondary
May 2021. The Company intends to request an All phases were accompanied by a certifying public offer (follow on) aimed at the sale of
extension to the Licence period. company in order to certify TR-BGUA’s ability the entirety of its remaining 37.5% stake in the
During the reporting period of the first half of to operate under the new proposed conditions. capital stock of Petrobras Distribuidora (BR
the year, Brent crude oil prices plummeted from This is one of the requirements for the continuity Distribuidora).
over $65 per barrel at year-end 2019 to a low of of the authorization process for the expansion of The proposal to carry out the follow on was
$20 per barrel in April 2020, before recovering TR-BGUA’s operational capacity from 20 mcm approved by Petrobras’ Board of Directors on
somewhat to around $42 per barrel by the end per day to 30 mcm per day with the competent August 26, 2020.
of June. The fall in prices was driven initially by authorities, such as the State Environmental However, according to press release to the
competition from OPEC for market share and Institute (INEA) and the National Petroleum, market disclosed on the same date, the trans-
then exacerbated later in the period by the signif- Natural Gas and Biofuels Agency (ANP). action is subject, among other factors, to the
icant drop in global energy demand as a result of TR-BGUA is located in the Guanabara Bay market conditions, to additional approvals by
the COVID-19 pandemic supressing oil and gas (TABG) Waterway Terminal Complex, in Rio de Petrobras’ internal bodies, notably regarding
consumption globally. Janeiro, next to the Ilha D’Água Terminal. price, and to the analysis of the Brazilian Secu-
The industry has been hit hard by this unex- The terminal consists of an island type pier rities and Exchange Commission (CVM) and
pected sharp drop in demand and commodity with two berths for mooring and anchoring a other regulatory and self-regulatory bodies,
prices, and has responded by reducing costs, FSRU vessel and a supply vessel, in cross jetty under the terms of the applicable legislation.
cutting capital expenditure and delaying pro- configuration. TR-BGUA’s current maximum Petrobras, September 22 2020
jects. Acknowledging this slowdown in activity,
the Company intends to request an extension to
the Licence term, which currently runs to May
1, 2021, as more time will be required to recover
from this downturn.
Despite the above, the Company continues
to seek partners to participate in drilling on its
Licence and is currently engaged with a number
of counterparties who have expressed interest.
Given the current challenging environment the
Company believes it may be some time before
any expressions of interest are translated into
commitments.
Financial overview: The Group loss for the
six months to June 30, 2020, was $192,000 (2019:
loss of $176,000) giving an undiluted loss per
share of US$0.0009 cents (2019: $0.0008 loss per
share). Administrative expenses were $148,000,
compared to $175,000 for the same period in
2019. Net assets of $29.3mn reflect a decrease of
$192,000 since December 2019 as a result of the

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