- Posted August 29, 2013 by
UK oil firm Heritage Oil reports positive 2013 interim results
The company has been boosted by encouraging results from its stake in the highly lucrative OML-30 oil field in Nigeria, which it acquired with a Nigerian company, Shoreline Power Company, in June 2012. The acquisition has proved successful with the oil field achieving record gross production since the purchase of around 44,000 barrels per day (bpd), with a first half average gross production for the licence of 15,327 bpd. A net average daily production of over 7,000 bpd was achieved in the first half of 2013, while production for the month of July 2013 averaged around 11,000 bpd, over 50% higher than the first half of the year.
The outlook for OML 30 is exceedingly positive; gross production for the second half of 2013 is expected to average 45,000 bopd, nearly triple that of the first half of the year. This results in a full year expected average for 2013 of around 30,000 bpd. Average gross production for 2014 is estimated in the range of 60,000 to 65,000 bpd and the increase in production will be achieved through the installation of new equipment, further work on existing wells and commencing production from the Uzere West field which has been shut-in for nearly two years. The company’s first exploration drilling in Tanzania and Papua New Guinea will happen in 2014, and development drilling at OML-30 is scheduled for summer 2014.
The firm has also continued work programmes in Tanzania through the processing of 2D seismic on the Rukwa licence and the processing and interpretation of seismic across the Kyela licence.
In Papua New Guinea, Heritage has expanded its exploration portfolio with the farm-in to two licences, which are both in a proven hydrocarbon-bearing region of the country. Heritage has also acquired 62 kilometres’ of seismic across the Tuyuwopi structure in the country and has confirmed a drilling location there.
In terms of corporate highlights, Heritage Oil has reported a very strong growth in revenues for the first half of this year, generating $238 million from its operations in Nigeria and Russia. The cash generated from these operations totalled $135 million in the six months ending on 30 June, while the firm’s cash position on that date was approximately $113 million, excluding $51 million used as security in respect of the OML-30 oil field, which was released back to the company on 22 August this year and replaced with an alternative security.
Heritage also successfully completed the refinancing of the bridge loan facility with a five year $500 million Senior Secured Revolving Reserves Based Lending Facility this year.