Maurel & Prom : Sales for the first half of 2018: US$237m (€196m)

Paris, 27 July 2018  No. 08-18Sales for the first half of 2018: US$237m (€196m)H1 2018 sales rose by 27% to US$237m, up from US$186m in H1 2017 Crude prices continue to rise: average sale price for the period was US$69.2, 36% higher than in H1 2017Drop in...

London, 27/07/2018 (informazione.news - comunicati stampa - energia)

The increase in sales compared to H1 2017 was largely due to the substantial rise in the average sale price of oil produced in Gabon (US$69.2/bbl, 36% higher than in H1 2017).

The entry into force of IFRS 15, mandatory from 1 January 2018, led the Group to change the way it recognises sales. Instead of being based on the Group's entitlements on the production delivered to the oil terminals ("entitlement method"), they are now calculated based on liftings during the period. In accordance with IFRS 15, this change in accounting method was applied prospectively, without restating comparative periods. The effect on sales in first-half 2018 in Gabon was positive to the tune of some US$18 million, with lifted volumes exceeding production.

In the first half of 2018, operated oil production in Gabon stood at 21,561 bopd (17,249 bopd net to M&P's working interest), down 13% compared to the same period in 2017. Following pressure increases in the export pipeline, the operator requested that evacuation of oil volumes be limited from mid-May. After consultation with partners, a progressive return to normal production levels started in early July.

Drilling activities to support the production profile and offset the fields' natural depletion resumed. However, the restart the drilling rigs after a three-year shutdown took longer than originally anticipated, and two of the eleven wells planned for 2018 have been drilled to date. An additional rig will soon be put into action to make up for the delay in the initial drilling schedule in the second half of the year. A positive impact on production is expected by the end of the year.

In Tanzania, average operated production was around 79.3 MMcf/d at 100%, equivalent to 38.1 MMcf/d for M&P's working interest (48.06%). Since February 2018, the monthly average operated production level has exceeded 80 MMcf/d, rising steadily to reach a level of 89 MMcf/d in June 2018.

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