Page 14 - LatAmOil Week 10 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
The Company is progressing each of these and will advise shareholders as appropriate.
Simon Potter, Chief Executive Officer of Bahamas Petroleum, said: “We continue to make steady progress toward drilling of the Compa- ny’s 100% owned and operated Perseverance #1 well, targeting recoverable prospective resources of 700mn-1.4bn barrels of oil. As we prepare for drilling we are taking every opportunity to opti- mise a large number of moving parts, both finan- cial and operational, and as part of this process we have successfully reset the timeline for our Convertible Notes while we work on finalising remaining conditions, at the same time seek- ing to only draw funds when they are actually required, with a view to reducing the overall cost of our comprehensive funding package.
“We have also been able to introduce a degree of optionality into those arrangements as we continue to pursue potentially more attractive options – for example, a farm-in – which would mean we could correspondingly scale back the Convertible Notes, consistent with our fund- ing strategy to minimise costs and dilutionary impact. I look forward to updating sharehold- ers on our continued progress over the coming weeks.”
Bahamas Petroleum Co., March 09 2020
PERFORMANCE
Trinidad: Touchstone
announces 2019
year-end reserves
TOUCHSTONE Exploration has announced highlights of its independent reserves evaluation prepared by GLJ Petroleum Consultants with an effective date of December 31, 2019.
Highlights of the total proven (1P), total proven plus probable (2P) and total proven plus probable plus possible reserves from the Reserves Report are provided below. All find- ing, development and acquisition (FD&A) costs below include changes in future development capital (FDC). Unless otherwise stated, all finan- cial amounts herein are rounded to thousands of US dollars.
The financial information contained herein is based on the Company’s unaudited expected results for the year ended December 31, 2019, and is subject to change.
Touchstone’s 2019 capital programme focused on exploration activities on the Ortoire property, where the Company drilled two gross (1.6 net) exploration wells. Touchstone con- ducted minimal capital development activity on its development properties, mainly performing
wellbore recompletions to arrest production declines. The Reserves Report included those reserves associated with its development prop- erties as well as new reserves associated with its Coho natural gas discovery in 2019. The Reserves Report does not include any reserves associated with the Cascadura discovery given well testing commenced subsequent to the effec- tive date of the report.
2019 Year-end Reserves Report Highlights: increased 1P reserves by 6% to 11,840 Mboe and increased 2P reserves by 14% to 22,056 Mboe from the prior year; replaced 2019 annual production by 193% on a 1P reserves basis and 519% on a 2P reserves basis; realised after tax 1P 10% discounted net present value of future net revenues (NPV10) of $83.7mn, representing an increase of $4.0mn or 5% from the prior year; achieved an after tax 2P NPV10 of $153.9mn, an increase of 6% from $145.4mn in 2018; real- ised 1P FD&A costs of $7.75 per boe, resulting in a recycle ratio 3.4 times using our unaudited annual 2019 operating netback of $26.62 per boe; achieved 2P FD&A costs of $3.95 per boe, resulting in a 2P recycle ratio of 6.7 times; FDC associated with only a portion of our internally identified drilling location inventory and port- folio of low risk recompletion projects totaled $45.4mn for 1P reserves and $71.7mn for 2P reserves; Coho was assigned gross working interest 1P reserves of 1.148bn boe and gross working interest 2P reserves of 3.349bn boe with a 2P NPV10 of $27.5mn before taxes.
James Shipka, Chief Operating Officer, com- mented: “The Company’s independent 2019 reserves evaluation reflected the strong perfor- mance of our base production and included the first reserves associated with our discoveries on the Ortoire exploration block. With gross working interest 2P reserves of over 20 bcf (approximately 3.4mn boe) assigned at Coho, the Company has exceeded the best estimates
of the recoverable gas in the pool compared to the independent evaluation report prepared for the Company in the prior year. With the second stage of the production test at Cascadura-1ST1 expected to commence this weekend, we look forward to updating our shareholders on this material discovery and the impact it will have on corporate reserves.”
Touchstone Exploration, March 06 2020
Petrobras sets new
record for fuel oil
exports in February
Petrobras has set a new record this year in February for fuel oil exports, reaching the 238,000 barrels per day mark and exceeding 1mn tonNEs this month. The new world standard for marine fuels (IMO 2020), which has reduced the sulfur rate limit from 3.5% to 0.5%, generated an unique opportunity for Petrobras, as both oil and fuel oils produced by the company have low sul- phur content.
Oil exports remain in high levels as well, with volumes superior to 690,000 barrels per day exported in February.
The highest export happened in a challeng- ing time for the world economy, considering that the coronavirus (COVID-19) outbreak restricted demand in Asia, the prime destina- tion for Petrobras exports. That considered, new flows were adjusted, with an increase of oil and fuel oils shipping to the Caribbean, United States and Europe, among other markets.
It is important to highlight that it is not yet possible to safely estimate all the impacts the company may suffer concerning its operations and results, considering the unfolding events of the COVID-19 outbreak in world economy. Petrobras, March 04 2020
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Week 10 12•March•2020