Page 19 - AfrOil Week 28 2022

AfrOil NEWS IN BRIEF AfrOil

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Payments totaling more than €5.9mn for royal- during 2021 is provided below. Oil delivered to third-party injectors for use of its pipeline and
ties receivable up to November 2021, including the Bonny terminal for sales was approximately terminaling facilities.
a payment in respect of its legal costs, have been 4,400 barrels per day of oil in 2021 (21,100 bpd of Construction of the pipeline continues to
received in 2022. From December 2021, the roy- oil in 2020) and has been affected by combined progress and hook up with ELI Akaso is expected
alties will continue to be payable in accordance losses and downtime of approximately 79%. The to take place in late 2022.
with the terms and conditions of the Royalty 2021 figure has also been affected by OPEC oil Outlook for 2022: Fuller barging opera-
Agreements, and payments and are not expected production quota restrictions, and some COV- tions from OML 18 to the FSO to commence in
to be material. ID-related delays. Field operations to boost pro- July2022. Completion of the proposed transac-
On February 15, 2022, the Company duction were largely put on hold, pending the tions with Midwestern and ELI expected later in
announced a further loan of $2mn to ELI, also start-up of the ACOES barging system. Together, 2022. The commissioning of the ACOES pipe-
enabling the Company to conditionally purchase the losses, downtime, OPEC restrictions and line. Restarting of field operations on OML 18.
a further 2% shareholding of ELI for a nominal COVID-related delays have caused the majority Export of oil from Oza. Continuing to position
sum. of the difference between gross production when the Company for further transactions.
In February 2022, the Company completed there is minimal disruption to production, and On July 8, 2022, the Company entered into
its $5.5mn investment in Decklar Petroleum oil is received at Bonny terminal for sales. the new facility for the purposes of funding its
Ltd, related to the Oza field onshore Nigeria, Gas sales averaged 29.6mn cubic feet per day working capital requirements and for financing
repayable to the Company as a loan through a (mcf per day) in 2021 after downtime (32.7 mcf the Further ELI Investments, details of which
cash sweep. The Company also holds 11% equity per day in 2020). can be found in the Admission Document. The
stake in Decklar. Production downtime of 9% in 2021 was new facility is for $50mn.
Board appointment process previously caused by third party terminal and gather- San Leon Energy, July 8 2022
announced completed with appointment of John ing system issues. This relates to days when oil
Brown as Independent Non-Executive Director production was entirely shut down at OML 18. Panoro Energy provides
and Chair of the Audit and Risk Committee. Historical issues in the third-party export sys-
Alan Campbell resigned from the Board in 2021 tem are expected to be substantially resolved Dussafu Marin update
as part of a board restructure. Lisa Mitchell left by the implementation of the new ACOES for
the Company as CFO and Executive Director in the purpose of transporting, storing and evac- Panoro Energy has provided an update on oper-
October 2021 and Julian Tedder was appointed uating crude oil from OML 18 export Pipeline. ations at the Dussafu Marin Permit offshore
as CFO and Executive Director in December The pipeline will run from within the OML 18 Gabon (Panoro 17.5% working interest).
2021. acreage to a dedicated FSO vessel in the open Gross production at the Dussafu Marin Per-
Financial: Included within the basis of prepa- sea, approximately 50 km offshore. Barging of mit for the first six months averaged approx-
ration note of the financial statements and Inde- oil from OML 18 to the FSO is expected to com- imately 11,150 bpd of oil and is in line with
pendent Auditor’s report are details regarding mence in July 2022, with trials already having expectations. Second-quarter gross production
material uncertainty related to going concern. been completed. Expected timing for the com- averaged approximately 10,700 bpd of oil from
This is uncertainty is mitigated by the transac- pletion of the pipeline component of ACOES is four wells, with the remaining two wells shut in
tions announced today. Cash and cash equiv- late 2022. due to pre-communicated gas lift capacity con-
alents as at December 31, 2021, were $7.6mn Pipeline losses by the Bonny Terminal oper- straints. As previously guided, there were no
(includes $6.8mn restricted and held in escrow ator have increased markedly over the past year liftings of crude oil made by Panoro during the
for the Oza transaction) (December 31, 2020: (31 December 2021: 70%; 31 December 2020: second quarter.
$18.5mn, including $6.8mn restricted and held 28%), largely due to lower pipeline through- Good progress continues to be made on the
in escrow for the Oza transaction). put as a result of OPEC quota restrictions and Hibiscus/Ruche Phase I development project
In 2021, $2.2mn (December 31, 2020: Covid-related issues. In the medium term, the with conversion work on the Hibiscus Alpha
$46.5mn) in principal and interest payments ACOES is expected to reduce losses significantly. offshore production unit nearing completion
has been received under the MLPL Loan Notes. Eroton has taken all appropriate precautions and on schedule with sail away set for August.
Outstanding amounts due under the MLPL for its operations and people, with regards to Separately, Borr Drilling has notified the
Loan Notes are now approximately $105.6mn COVID-19. operator BW Energy that delivery of the jack-up
(par value), which are subject to current repay- An update on ELI is as follows: Whilst there drilling rig Borr Norve may be re-scheduled
ment waivers pending the completion of the pro- have been some delays to ACOES principally towards the end of the year due to the intention
posed Midwestern Reorganisation, and would due to COVID, barging operations from OML of a third-party operator in the region to exercise
be extinguished as part of the consideration if 18 to the ELI Akaso FSO are now expected by its final remaining well options.
the transaction were to complete. ELI to commence during July 2022. On the basis that the third party exercises its
Operational: An update on OML 18 activity ELI is in advanced negotiations with other option the JV partners anticipate first oil from
the Hibiscus Ruche Phase I development would
occur towards the end of the first quarter in 2023
compared to the prior expectation of late 2022.
Panoro Energy, July 12 2022
Petronor issues production

update for Q2-2022

PetroNor E&P has provided an update on its sec-
ond quarter production.

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