Page 18 - LatAmOil Week 19 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
Given the current ONP timetable, it is expected that Bretaña oil delivered pursuant to the swap contract will be sold by Petroperu in late Q3-2020, and Bretaña oil delivered pursuant to the sales contract will be sold by Petroperu com- mencing in Q4-2020, at which time the contango effect forecasts a higher Brent oil price, which would result in a lower liability. The current shut in status of the ONP could result in these phys- ical oil sales occurring further into the future. Under the terms of the sales contract, the com- pany is required to settle this contingent liability when the balance exceeds $10mn.
The company is in discussions to facilitate an arrangement that is expected to result in this contingent liability, when crystallised, to be paid over a three year period from future cash flow. This is an effective way to settle these obligations now, thereby allowing the company to realise the favorable impact of the expected future higher oil prices when the physical oil sales occur. As specific details are finalised, more information on this potential source of finance will be announced in due course. The company continues to assess other financing alternatives to ensure it has the necessary funding for its operations.
PetroTal, May 07 2020
SERVICES
Solstad Offshore signs contract for Far Saga CSV
Solstad Offshore is pleased to announce that the Brazilian-flagged CSV, the Far Saga, has been awarded a contract with Petróleo Brasileiro (Petrobras) for a period of three years firm.
The Far Saga will be equipped with two Work Class ROVs from C-Innovation suitable for operating to 3.000 metres water depth. The vessel will keep supporting exploration and pro- duction activities in Brazilian continental shelf. Commencement of the Contract shall take place during Q3-2020.
The Far Saga has been operating in Brazil since 2014.
CSV, May 11 2020
PERFORMANCE
Pampa Energía announces results for Q1-2020
Pampa Energía, the largest independent inte- grated energy company in Argentina, with active participation in the country’s electricity and gas value chain, announces the results for the quarter
ended on March 31, 2020.
As from January 1, 2019, the Company
adopted US dollars as functional currency for the reporting of its financial information. The presentation of this information in Argentin- ian pesos is converted at transactional nominal exchange rate (FX).
However, Edenor (distribution segment), OldelVal (oil and gas segment), Transener, TGS and Refinor (holding and others segment) con- tinue recording their operations under local currency. Thus, the first quarter of 2020 figures are adjusted as of March 31, 2020, by a 3.8% infla- tion rate, translated to US dollars at closing FX of 64.47. For the comparative period of the first quarter of 2019, figures remain adjusted as of March 31, 2019 by an inflation rate of 5.6%, and translated to US dollars at closing FX of 43.351.
Main highlights from Q1-2020: Consol- idated net revenues of $607mn, 17% lower than the $727mn recorded in Q1-2019, due to decreases of 35% in power generation, 18% in electricity distribution, 25% in oil and gas, 5% in petrochemicals, 14% in holding and others and lower eliminations from intersegment sales ($56mn); power generation of 4,608 GWh from 15 power plants; electricity sales of 5,203 GWh to 3.1mn end-users; production of 46,000 boe per day of hydrocarbons; sales of 87,000 tonnes of petrochemical products; consolidated adjusted EBITDA of $221mn, 5% higher than the $210mn for Q1-2019, mainly due to increases of 18% in power generation and 74% in electricity distribution, partially offset by decreases of 38% in oil and gas, 10% in holding and others, and $4mn losses in petrochemicals; consolidated gain attributable to the owners of the company of $14mn, 92% lower than the $167mn gain in Q1-2019, mainly due to the recording of a loss from impairment of assets ($67mn), lesser results from net monetary position (RECPAM) recorded due to the lower passive net monetary position allocated to the electricity distribution
segment ($50mn) and higher income taxes charges ($35mn).
Pampa Energía, May 12 2020
Gran Tierra Energy announces Q1-2020 results
Gran Tierra Energy today announced the Company’s financial and operating results for the quarter ended March 31, 2020. All dol- lar amounts are in US dollars and production amounts are on an average working interest before royalties (WI) basis unless otherwise indicated. Per barrel of oil equivalent amounts are based on WI sales before royalties. For per boe amounts based on net after royalty (NAR) production, see Gran Tierra’s Quarterly Report on Form 10-Q filed May 11, 2020.
Key Highlights: Average production during the quarter was 29,527 boepd, down 10% from Q4-2019.
During the quarter, volumes were impacted by suspended production at the Suroriente and PUT-7 Blocks in the southern Putumayo region due to a local farmers’ blockade, deferred development drilling, shut-in of higher cost production and wells that were off line awaiting routine mechanical workovers. These wells are expected to remain off-line during the low-price environment.
Decisive action to swiftly shut-in uneco- nomic production: Gran Tierra has temporarily suspended fields with zero or negative netbacks at current oil prices and taken precautions to minimise restart costs across all assets; Gran Tierra remains focused on the ongoing produc- tion and water flooding of the Company’s core assets at Acordionero, Costayaco and Moqueta, which represent 81% of Gran Tierra’s WI Total Proved Reserves as of December 31, 2019.
Gary Guidry, president and chief executive officer of Gran Tierra, commented: “Gran Tierra has taken decisive action to protect our balance sheet and cash flows by swiftly reducing our 2020 capital programme. We believe we have a competitive advantage to withstand the current challenging environment in light of our low base decline, conventional oil asset base, ability to control capital allocation and low cost struc- ture. We forecast that the Company currently has the productive capacity to produce over 30,000 bpd with the future completion of workovers in Acordionero, resumption of production in the Suroriente Block and restart of production from our minor fields, although we have prudently suspended these workovers and restarts at the present time. We continue to prioritise financial strength and liquidity and currently believe we will exit strongly from this period of economic turmoil.”
Gran Tierra Energy, May 11 2020
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Week 19 14•May•2020