Page 16 - LatAmOil Week 18 2021

LatAmOil NEWS IN BRIEF LatAmOil

“We highlight the ongoing process for the (3P) only calculated for three of the Compa-
potential acquisition of the Ministry of Finance’s ny’s 20 assets. Net 1P Reserves of 1.103mn bar-
controlling stake in ISA, which responds to Eco- rels of oil with a PV10 valuation of $34.802mn
petrol’s strategic interest of entering into new or CAD$4.69 per share. Net 2P Reserves of
businesses aligned with the opportunities for 2.827mn barrels of oil with a PV10 valuation
electrification and decarbonisation, dictated by of $90.386mn or CAD$12.18 per share. Net 3P
the energy transition, and which in turn lever- Reserves of 4.011mn barrels of oil with a PV10
age the Group’s profitable growth. Also, we also valuation of $127.332mn or CAD$17.16 per
remark the announcement of new decarboni- share.
sation commitments which are aligned with a Richard F. Gonzalez, CEO of Petro-Victory,
carbon-neutral future. commented: “The certified Reserve Report
“The financial results for the quarter reflect reflects the material shareholder value increase
an extraordinary recovery. Ecopetrol Group that our team has been building since our arrival
achieved a net income of COP3.1 trillion and in Brazil. Our current focus is on executing the
an EBITDA of COP8.2 trillion in Q1-2021 – 2021 drilling and workover programme to sig-
equivalent to a 48% EBITDA margin. These nificantly increase our oil production, cash flow
results almost double those achieved through- and profitability. We remain diligent and active
out 2020, and were accomplished mainly due to: in our pursuit to acquire and increase our portfo-
i) a strengthened realisation price of the crude operating restrictions in the Castilla field, an lio of low risk high impact onshore oil fields. We
oil export basket at 43% vis-à-vis Q1-2020, from increase in Basic Sediment and Water contents are also very pleased that our Brazilian opera-
$40.3 per barrel to $57.8 per barrel, supported in in fields such as Chichimene, Akacias, Yariguí, tions are generating positive cash flow. We thank
better Brent levels, which went from $50.8 per Rubiales, and, in a lesser extent, the withdrawal our shareholders and stakeholders for their con-
barrel on average for Q1-2020 to $61.3 per barrel of volumes related to the divestment of Savia in tinued support and trust.”
for Q1-2021; ii) active commercial strategy with Peru. Given the effects of the first quarter, we Petro-Victory, May 04 2021
our clients in the markets of China, Gulf of Mex- currently estimate a production range between
ico (USA) and Europe; and iii) lower operation 690,000-700,000 boepd for the year 2021 and we
costs leveraged by a solid efficiency agenda. This are implementing a plan that will seek to restore INVESTMENT
first quarter closed with a solid cash position the growth path.
(COP8.1 trillion) and a 2.5-times Gross Debt/ “On natural gas and LPG, we had a remarka- Petrobras starts
EBITDA indicator for the last twelve months, in ble 12% increase in the production level, mainly
line with our business plan. as a result of local demand recovery and the rise binding phase for the
“Ecopetrol continues to undertake efforts in production of Hocol due to the acquisition of
and deploy strategies to achieve a more efficient Chevron’s stake in the Guajira asset. The contri- sale of TBG and TSB
operation. At the end of Q1-2021, the Group bution of gas and LPG was of 23% of the total
realised efficiencies amounting to COP263.7bn. production, with a 53% EBITDA margin and a Petrobras, following up on the release disclosed
This was reflected in a 9% decrease vs. Q1-2020 11% contribution to the upstream EBITDA.” on February 05, 2021, informs the beginning of
in operating costs and expenses. In turn, the Ecopetrol, May 04 2021 the binding phase regarding the sale of the total-
total unit cost was $32.6 per barrel, slightly lower ity of its stakes of 51% in Transportadora Bra-
when compared to the total unit cost in the same Petro-Victory Energy sileira Gasoduto Bolivia-Brasil (TBG) and 25%
period of 2020. The above is explained by the in Transportadora Sulbrasileira de Gás (TSB).
reduction in costs and expenses and a higher announces independently Potential buyers qualified for this phase will
currency exchange rate, partially offset by the receive a process letter with detailed instructions
increase in the variable factors associated with certified reserves on the divestment process, including guidelines
purchases and imports resulting from a better for conducting due diligence and for submitting
Brent. Petro-Victory Energy has announced inde- binding proposals.
“In exploration, Ecopetrol and its partners pendently certified reserves for the first time in TBG is a company that operates in the trans-
finished drilling five wells during Q1-2021. Pro- the Company’s history. portation of natural gas and is present in the
duction from exploration assets increased 39% As of December 31, 2020, total proved plus main economic axis of Brazil, in the Midwest,
as compared to 1Q20, mainly due to contribu- probable (2P) reserves of 2.827mn barrels of South-east and South regions, being the owner
tions from Esox-1, Arrecife-1, Andina Norte-1, oil and a before tax value discounted at 10% of and operator of the Bolivia-Brazil gas pipeline in
Boranda-3 and Boranda-2ST. Noteworthy are $90.386mn has been assigned to the company Brazilian territory. Its gas pipeline has a length of
Ecopetrol-operated Flamencos-2 wells, and El for the Andorinha, Carapitanga and Sao Joao oil 2,593 km, with a transportation capacity of up to
Niño-1 – operated by Perenco in association fields in Brazil. This represents a 2P Net Asset 30mn cubic metres per day of natural gas.
with Ecopetrol – which were drilled in 2020 and Value of CAD$12.18 per share on an undi- TSB is located in Rio Grande do Sul, with 50
declared successful in 1Q21 upon completion luted basis (9,214,020 shares outstanding). The km of pipelines already installed, with a trans-
of relevant testing. At the international level, we reserves data set forth herein is based on an portation capacity of up to 7.68mn cubic metres
continue to make progress in the commercial independent reserve assessment and evaluation per day of natural gas and an additional 565-km
feasibility studies and development plan of Gato prepared by GLJ Ltd dated April 13, 2021, with project that, once completed, will allow the con-
do Mato discovery in the Brazilian pre-salt. an effective date of December 31, 2020. nection of the production fields in Argentina to
“Average production in Q1-2021 was 675,700 Reserve Report Highlights: Proved Reserves the metropolitan region of Porto Alegre and to
boe per day. Our production had an impact (1P), Proved Plus Probable Reserves (2P) and TBG’s gas pipeline.
when compared to Q4-2020 mainly due to Proved Plus Probable Plus Possible Reserves Petrobras, April 30 2021

P16 www. NEWSBASE .com Week 18 06•May•2021