Page 15 - LatAmOil Week 11 2022

LatAmOil NEWS IN BRIEF LatAmOil

connection with the 2028 Senior Notes offering,
the Corporation entered into a tender offer with
Credit Suisse Securities (USA) LLC to purchase
any and all of the outstanding $320mn Senior
Notes due in 2025, which were subject to a 7.25%
interest rate. The Corporation used the $500mn
proceeds to repay its Credit Suisse Bank Debt of
$30mn and refinance its 2025 Senior Notes of
$320mn.
As at December 31, 2021, the Corporation
had $138.5mn in cash and cash equivalents
and $148.1mn in working capital surplus. The
increase in cash and cash equivalents was mainly
due to the refinancing of the Corporation’s Sen-
ior Notes with an incremental principal amount
of $180mn. The Senior Notes interest rate was
reduced from 7.25% to 5.75% per annum.
Canacol Energy, March 17 2022
Crown Point announces

results for Q4-2021 and

full year 2021
to $0.20 per basic share and $0.80 per basic share The Corporation’s natural gas operating
for the same periods in 2020, respectively. netback decreased 5% to $3.40 per mcf in the Crown Point Energy today announced its oper-
Adjusted EBITDAX increased 7% and 4% year ended December 31, 2021, compared to ating results for the three months and year ended
to $49.2mn and $194.4mn for the three months $3.57 per mcf for the same period in 2020. The December 31, 2021.
and year ended December 31, 2021, compared to decrease is mainly due to the lower average real- Tierra del Fuego Concession (TDF): YPF,
$45.9mn and $187.5mn for the same periods in ised prices, net of transportation expense due to operator of the Cruz del Sur oil storage and off-
2020, respectively. lower priced fixed contracts for the 2021 con- shore loading facilities, recently gave notice that
The Corporation realised a net income of tract year, compared to the 2020 contract year. In the offshore loading facility was being closed due
$7mn and $15.2mn for the three months and addition, the Corporation’s operating expenses to technical difficulties. YPF had intended to
year ended December 31, 2021, compared to a per mcf increased 4% to $0.28 per mcf in the year decommission the offshore loading facilities in
net income of $0.9mn and a net loss of $4.7mn ended December 31, 2021, compared to $0.27 July 2022 but has now decided to cease offshore
for the same periods in 2020, respectively. The per mcf for the same period in 2020. loading operations immediately.
net income realised during the three months Net capital expenditures for the three months Crown Point, together with its joint venture
and year ended December 31, 2021 was mainly and year ended December 31, 2021 were partners and YPF, have been building a 23-km,
due to a lower deferred tax expense of $10.7mn $21.6mn and $99.9mn, respectively. Net capital 6-inch oil pipeline to connect the Cruz del Sur oil
and $37.4mn realised during the three months expenditures included non-cash adjustments storage facility and the San Martin oil field with
and year ended December 31, 2021, respec- related mainly to decommissioning obligations the Total Austral operated Rio Cullen marine
tively, which was mainly as a result of the and right-of-use leased assets of $1.5mn and terminal, in anticipation of the Cruz del Sur off-
de-recognition of certain deferred tax assets for $2.9mn for the three months and year ended shore loading facility closure in the second half
non-capital losses in Q4 2020. In addition, there December 31, 2021, respectively. of 2022. This project will be accelerated. How-
were increased revenues, net of transportation On June 17, 2021, the Corporation entered ever, in the interim Crown Point together with
expenses in 2021 due to higher sales volumes. into a three-year term credit agreement with its joint venture partners are arranging to export
The Corporation’s natural gas operating net- Banco Davivienda for a principal amount of oil by truck to the ENAP refinery at San Grego-
back slightly increased to $3.59 per mcf in the $12.9mn denominated in COP, which is subject rio, Chile and to the Total Austral operated Rio
three months ended December 31, 2021, com- to an annual interest rate of IBR plus 2.5%. (IBR Cullen marine terminal in Tierra del Fuego. The
pared to $3.58 per mcf for the same period in was 1.86% at the agreement date.) The Colombia sales price at both San Gregorio and Rio Cullen
2020. The increase is mainly due to a decrease Bank Debt was used to repay the Corporation’s is indexed to the Brent oil price.
in royalties by 8% to $0.67 per mcf in the three litigation settlement liability, which was subject La Angostura Concession: During 2021, San
months ended December 31, 2021, compared to to an 8.74% annual interest rate. The principal is Martin oil production averaged 1,666 (net 579)
$0.73 per mcf for the same period in 2020. The scheduled to mature three years from the agree- barrels of oil per day. Oil is transported through
decrease of royalties was due to lower produc- ment date. the Company-owned San Martin oil pipeline
tion at the Corporation’s VIM-5 block, which is On November 24, 2021, the Corporation connecting the field to the Cruz del Sur facil-
subject to a higher royalty rate. The lower roy- completed a private offering of senior unse- ity for storage and subsequent sale. During the
alties were offset by higher operating expenses cured notes in the aggregate principal amount of latter part of Q3-2021, colder weather caused a
per mcf of 9% to $0.35 per mcf during the three $500mn. The 2028 Senior Notes will pay interest buildup of paraffin deposits in the San Martin oil
months ended December 31, 2021, compared semi-annually at a rate of 5.75% per annum, and pipeline forcing its temporary shutdown. Dur-
to $0.32 per mcf for the same period in 2020, will mature in 2028, unless earlier redeemed or ing this time oil was trucked to the Cruz del Sur
mainly due to an increase in maintenance costs. repurchased in accordance with their terms. In facility.

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