February 13, 2020
The fourth quarter marks OKEA’s first year as a production operator on the Norwegian Continental Shelf (NCS). 2019 was a year with strong operational performance and a total net production of 18 663 boepd, high production regularity, safe and efficient completion of the first operated drilling campaign, zero serious safety incidents and tangible results from projects aiming to further realise Draugen’s potential.
“In our first year as a field operator, we have proven OKEA’s solid operating capabilities. We generated a solid cash flow of NOK 2 111 million from operations, and we invested more than NOK 840 million in our asset base, including the new development of Yme. We paid NOK 172 million in tax. Our Draugen experience with integration of people, competence, assets and operational improvements will be transferable to other operated assets by OKEA when the timing is right.”, says Erik Haugane, CEO of OKEA.
The net production in the fourth quarter was 17 020 boepd, compared to 18 125 boepd in the third quarter. The production decrease is explained by temporarily shut-in of well D2, well maintenance and natural decline on Draugen, and a shutdown on Gjøa due to unplanned maintenance in November.
Revenues from oil and gas sales in the fourth quarter were NOK 534 million, up from NOK 97 million in fourth quarter 2018, but down from NOK 612 million in the third quarter mainly due to an unplanned shutdown at Gjøa in the quarter and continued restrictions on SEGAL as disclosed last quarter. The restrictions on SEGAL ended in December. The average realised liquid price in the fourth quarter was USD 61.2 per barrel compared to USD 56.4 in the third quarter, while the average gas price was USD 0.13 per standard cubic meter compared to USD 0.11 in the third quarter.
The operating profit was NOK 55 million, down from NOK 227 million in third quarter 2019. Net profit after tax was NOK -2 million in the quarter, an increase from NOK -77 million in the third quarter.
In the fourth quarter, OKEA successfully completed the refinancing of a USD 120 million five-year senior secured bond as OKEA03 and replaced the OKEA01 bond. The refinancing strengthens OKEA’s financial flexibility.
“OKEA will generate future cash flow through continued focus on safety, operational efficiency and maturing resources by use of new technology, digitalisation and partner collaborations.”, says Mr. Haugane.
The fourth quarter results will be presented by Erik Haugane, CEO, Tor Bjerkestrand, SVP Operations and Kjersti Hovdal, SVP Accounting and Controlling today at 08:15 CET at Felix Conference Centre at Bryggetorget 3 in Oslo.
The presentation and Q&A session may also be followed through a live webcast from www.okea.no.
CEO Erik Haugane, +47 907 21 655
VP Investor Relations Ståle Myhre, +47 917 51 878
OKEA ASA is an Exploration and Production (E&P) company and operator on the Norwegian Continental Shelf with production of ~20,000 boe per day. The company aims to grow through low-cost field developments of discoveries with reserves up to 100 million boe and mergers and acquisitions (M&A). The operating organisation is built on the acquisition of the producing field Draugen in 2018.
OKEA ASA is listed on Oslo Stock Exchange under the ticker "OKEA".
More information on www.okea.no