Page 16 - LatAmOil Week 15 2020

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NEWS IN BRIEF
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Martin Hull, Echo’s Chief Executive, com- mented: “We have moved quickly to materially reduce our expenditure during this period of low oil prices and uncertainty arising from the COVID-19 pandemic. I am pleased with pro- gress made, in collaboration with Echo’s part- ners, to prioritise higher margin gas sales and focus our workover rig on the potential near term upside of rehabilitating existing wells, whilst deferring non-essential activities and maintaining critical operations.
“Combined with continuing progress in the restructuring of Echo’s debt, these efforts pro- vide the Board with significant confidence for the future.”
Echo Energy, April 15 2020
Rockhopper Exploration
announces full-year
results for 2019
Rockhopper Exploration, the oil and gas explo- ration and production company with key inter- ests in the North Falkland Basin, is pleased to announce its audited results for the year ended December 31, 2019.
Highlights: Sea Lion Phase 1 development - project validated and de-risked through intro- duction of Navitas as joint venture partner; detailed Heads of Terms signed with Navitas to farm-in for a 30% interest in the Sea Lion pro- ject; under the Heads of Terms, Rockhopper’s costs for the Phase 1 development (not met by external debt) are to be funded by Premier and Navitas from January 1, 2020, to Phase 1 Project Completion (estimated to occur 9-12 months after first oil); through the FEED and optimisa- tion processes, the project has been substantially de-risked from a technical and cost perspective; resources to be developed in Phase 1 increased from 220mn to 250mn barrels (gross) with associated capex to first oil estimated at approx- imately US$1.8bn (gross); public commitment that Sea Lion will be developed on a net zero emissions basis.
Financial: revenue of US$10.3mn and oper- ating costs US$4.6mn; cash operating costs of US$9.9 per boe - maintaining a low cost base; continued management of G&A costs - US$5.3mn - reduced by circa 30% in the last 3 years; cash resources of US$21.9mn as at April 1, 2020 (unaudited).
Corporate: appointment of Keith Lough as Non-Executive Chairman following the retire- ment of David McManus at the Company’s AGM in May 2019; Ombrina Mare arbitration - in June 2019 the Tribunal rejected Italy’s request for suspension and related intra-EU jurisdic- tional objections; disposal of Rockhopper Egypt for US$16.0mn completed in February 2020;
initiatives identified to further materially reduce corporate G&A costs in response to current mar- ket conditions.
Outlook: Despite the current oil price weak- ness, all parties remain committed to the finali- sation of the Navitas farm-out agreement with completion subject to agreed consents and approvals; in response to recent external events, cost reduction process initiated to scale-back headcount and activity at Sea Lion pending an improvement in the external macro environ- ment; outcome in relation to Ombrina Mare arbitration expected in the coming months - seeking significant monetary damages. Rockhopper Exploration, April 09 2020
SERVICES
YPF selects Emerson Technology as application forcorporateseismic interpretation
Emerson announced it has signed a multi-year agreement with YPF, a major Argentinian energy company, for Emerson’s exploration and pro- duction (E&P) software for seismic data inter- pretation and visualisation. This comprehensive software portfolio gives YPF a holistic subsur- face view of its reservoirs and exploration areas, leading to a collaborative and integrated seismic interpretation workflow for faster cycle-times. Emerson replaces other interpretation solutions at YPF and becomes its corporate interpretation software standard.
As the leading exploration and production company in Latin America, YPF produces almost 50% of the oil and 30% of the natural gas in Argentina. Production comes from more than
100 areas in Argentina’s five producing basins: Austral, Golfo San Jorge, Neuquina, Cuyana and Noroeste.
YPF sees Emerson’s seismic interpretation solution – combining geophysics, geology, petrophysics and engineering – as an essential contributor to its drilling success. Due to the integrated environment, seismic interpreters will access a unique database and use modeling technology to validate their interpretation and to construct more representative models of the subsurface.
“After an intensive technical and economical evaluation, we concluded that Emerson’s appli- cations provide an interpretation platform that enables project integration, seismic interpret- ers collaboration and provides easy access to the corporate database while accommodating multiple users. This allows us to maximise the usage of data, reduce the seismic interpretation cycle-time to reach most accurate results in an integrated and collaborative way,” said Teresa Santana,chiefgeophysicistofYPF.
Emerson’s leading E&P software is part of the company’s overall focus on helping the indus- try leverage digital transformation technolo- gies to safely optimise operations and enhance production.
“Our goal is to help energy exploration and production companies extract the most from their field assets,” said Steve Santy, president of E&P software at Emerson. “We are proud to col- laborate with YPF and to provide the tools and insights they need to increase efficiency, reduce costs and seismic interpretation time, and accel- erate digital transformation.”
The first Emerson E&P software solution to be integrated into the YPF portfolio is its mul- ti-survey seismic interpretation and visualis- ation suite. The agreement also gives YPF access to Emerson software solutions for processing and imaging, modeling and petrophysics. Emerson Technology, April 16 2020
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