Page 19 - LatAmOil Week 28 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
Jaguar selects Emerson
to enhance onshore
exploration and
production programme
Emerson has announced that Jaguar Explo- ración y Producción, an independent oil and gas company based in Mexico City, will use its exploration and production (E&P) software and services to maximise the potential of Jag- uar’s onshore assets and projects. Jaguar plans to utilise Emerson’s E&P so ware solutions for seismic and well data analysis, multi-survey seis- mic and geologic interpretation, petrophysical analysis and subsurface modeling to improve performance, enhance operational certainty and support e ective asset management.
“Emerson is a leader in the space and a good long-term partner who will help Jaguar trans- form Mexico’s energy future,” said Victor Vega, executive vice president at Jaguar.
Having been awarded 11 of the 24 blocks o ered, Jaguar was the biggest winner of the six and seventh auctions held since the Mexican government opened the country’s energy indus- try to private competition in 2013.
Jaguar will use Emerson’s E&P software to help safeguard its investment in Mexico by reducing uncertainty in its exploration projects and development elds. Jaguar has also chosen Emerson to provide hosting services so that its E&P team can have remote access to all Emerson applications from multiple geographic locations via internet.
“We have had a long and rewarding working relationship with Jaguar,” said Kurt Machnizh, Mexico country manager, E&P so ware solu- tions, Emerson. “We are pleased and proud to receive this endorsement as a testimony to the value of our so ware, the comprehensiveness of our geoscience services, and the exibility of our hosted environment.”
Emerson, July 09 2020
INVESTMENT
Petrobras announces
sale of Pescada Cluster
shallow-water fields in
the Potiguar Basin
Petrobras has announced the sale to OP Pescada Oleo e Gas, a wholly-owned subsidiary of Ouro Preto Oleo e Gas, of its entire stake in the Pes- cada, Arabaiana, and Dentao elds located in
shallow waters of the Potiguar Basin (Pescada Cluster), in the state of Rio Grande do Norte.
e sale value is $1.5mn, to be paid in two installments: (a) $300,000 at signing of the trans- action; and (b) $1.2mn at closing of the transac- tion, without considering the adjustments due.
e closing of the transaction is subject to the ful llment of previous conditions, such as the approval by the Administrative Council of Economic Defense (CADE) and the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
is disclosure complies with the Petrobras’ divestment guidelines and with the provisions of the special procedure for assignment of rights to exploration, development and production of oil, natural gas and other uid hydrocarbons, pro- vided for in Decree 9,355/2018.
is transaction is in line with the portfolio optimisation strategy and the improvement of the company’s capital allocation, increasingly concentrating its resources in deep and ultra- deep waters, where Petrobras has demonstrated great competitive edge over the years.
Pescada Cluster comprises three shallow water elds: Pescada, Arabaiana and Dentao, located in the state of Rio Grande do Norte. Petrobras is the operator of the three elds with 65% interest and OP Pescada Oleo e Gas holds the remaining 35% in consortium. e average production of the Pescada Cluster from January to June 2020 was approximately 260 barrels of oil per day (bpd) and 190,000 cubic metres per day of gas.
Petrobras, July 10 2020
PERFORMANCE
PetroTal announces Q1-2020 results
PetroTal is pleased to announce its nancial and operating results for the three months ended March 31, 2020 (Q1-2020). Selected nancial, reserves and operational information is outlined below and should be read in conjunction with the Company’s unaudited consolidated nan- cial statements and management’s discussion and analysis for Q1-2020, which are available on SEDAR and the Company’s website. Reserve numbers presented herein were derived from an independent reserves report prepared by Neth- erland, Sewell & Associates, Inc (NSA) e ective December 31, 2019. All amounts herein are in US dollars unless otherwise stated.
The Company reached several key opera- tional and nancial achievements as described below: Commenced drilling the BN 95-6H hori- zontal well (the 6H well) on February 17, 2020. e well reached a lateral length of 1,178 meters
and was completed using autonomous in ow control device (AICD) valves that restrict water in ow. e 6H well came online on April 10, 2020 producing approximately 5,750 barrels of oil per day (bpd) initially, and achieved average production of approximately 4,500 bpd for the rst 10 production days during April;
The 6H well was completed on time and under the original $12.6mn budget; e Bretaña oil eld reached new record quarterly produc- tion of 9,686 bpd and sales of 10,313 bpd. is represents a 25% increase from Q4-2019 pro- duction of 7,767 bpd; Completed commission- ing of the enhanced central production facilities (CPF-1) bringing overall oil production capacity to between 16,000 bpd and 18,000 bpd;
Announced increases in all reserve categories following 2019 year-end reserves evaluation by NSAI: Proved (1P) reserves of 21.5mn barrels, an increase of 20% (17.9mn barrels at year-end 2018); Proved plus Probable (2P) reserves of 47.7mn barrels, an increase of 21% (39.4mn bar- rels at year end 2018); and Proved plus Probable and Possible (3P) reserves of 84.8mn barrels, an increase of 8% (78.7mn barrels at year end 2018); In light of global market uncertainty, postponed drilling of a second water disposal well, delayed completion of CPF-2 facilities, and postponed drilling of the BN 95-7H horizontal well.
Q1-2020 Financial Highlights: Gener- ated revenue of $41.8mn ($44.51 per barrel) compared to $50.5mn ($57.71 per barrel) in Q4-2019; Royalties to the Peruvian government were $1.8mn (4.3% of revenue) during Q1-2020 compared to $1.8mn (3.6% of revenue) for Q4-2019;Funds flow provided by operations was $15.1mn compared to $21.7mn in Q4-2019; Operating costs were $6.0mn ($6.42 per barrel) for Q1-2020 consistent with $6.0mn ($6.91 per barrel) for Q4-2019; Transportation costs, were $16.1mn ($17.18 per barrel) for Q1-2020 increased from $14.3mn ($16.30 per barrel) for Q4-2019, as a result of the new oil sales contract nalised in December 2019; e company had cash of $7.4mn at the end of Q1-2020 compared to $21.1mn at year-end 2019 and $17.8mn at the end of Q1-2019. Current cash (as at July 9, 2020) is $24mn; Net operating income was $17.8mn ($18.98 per barrel) in Q1-2020 compared to net operating income of $28.4mn ($32.42 per bar- rel) in Q4-2019; and Resulting from the signif- icant global oil price reduction, the Company had a contingent derivative liability of $40.8mn at March 31, 2020. e actual liability of the oil price di erence determination is expected to be lower due to the projected improvement in oil prices when physical sales occur in Q3 and Q4-2020 (for reference, based on the average Brent oil price of approximately $40 per barrel for June 2020, the contingent liability is approx- imately $25mn).
PetroTal, July 09 2020
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