May 7, 2019
Trondheim, 7 May 2019: OKEA – a fast-growing oil and gas producer operating on the Norwegian Continental Shelf – today releases the financial results for the first quarter 2019.
OKEA delivered strong operational income and cash flow in the first quarter. Operational performance was solid and the company's field developments at Yme and Gjøa progressed as planned and remain on track.
The CEO of OKEA, Erik Haugane comments:
"The first months of 2019 were pivotal for OKEA. In our first full quarter as operator at the Draugen field, production efficiency was high, and we safely performed a planned shutdown for piping replacement. We reported a production of around 19 500 boepd in Q1 2019 which generated a strong net cash flow to OKEA in the quarter.”
“Our growth initiatives are progressing well. A plan for development of the P1 project at Gjøa was summitted in February with a planned production start in Q4 20/Q1 21 and the Yme development is on track towards first oil in 1H 20. We are also pleased that OKEA was awarded four new licenses on the NCS under APA 2018, whereof three as operator”, he continues.
This is the first quarter that includes the activities from Draugen and Gjøa for a full quarter, and the figures in the financial statement are largely influenced by this fact.
OKEA reported total operating income of NOK 764 million for the first quarter 2019 and profit from operating activities of NOK 175 million. Net increase in cash and cash equivalents in the quarter was NOK 191 million.
The first-quarter report will be made available on www.okea.no
Subsequent quarter events:
In April, OKEA retained Pareto Securities AS, SEB and SpareBank 1 Markets AS as Co-Lead banks in connection with the contemplated listing of the company’s shares on the Oslo Stock Exchange. The listing could take place during first half of 2019 and could involve OKEA raising new equity to finance additional growth.
Also, in April, OKEA released that the company on behalf of PL093, had secured the semi-submersible rig “Deepsea Nordkapp” to drill two wells in the Draugen field area. The drilling operation is expected to commence in Q4 2019. The planned drilling program is a step in realizing the ambition of enhanced oil recovery from the Draugen field and prolonged production from the Draugen platform.
For questions or further information, please contact:
CEO Erik Haugane +47 907 21 655
SVP Finance & IR Knut Evensen +47 950 77 622
OKEA is a fast-growing oil and gas producer operating on the Norwegian Continental Shelf (NCS) aiming to bring undeveloped discoveries with less than 100 million boe in reserves into production. We are a trusted partner on a local, regional and national level with a clear ambition to create value for owners, employees and society as a whole.
Our overall vision is to be the leading company on the NCS in terms of delivering safe and cost-effective field developments and operational excellence, while maintaining a competent organization with direct management engagement in all of our projects.
OKEA was established in June 2015 and founded with capital contributions from four members of management, as well as capital managed by Seacrest Capital Group.
OKEA consists of a strong management team coupled with a tier-one operator organization of more than 200 employees ensuring operational excellence. The NOK 4.5 billion acquisition of interests in Draugen and Gjøa in 2018 transformed OKEA from an E&P start-up to an established player.
Our head office is based in Trondheim and includes most of our management functions. Our offshore operational center for existing and future OKEA-operated fields is based in Kristiansund.