Key highlights
Record financial results driven by strong production growth (+123%); FY 2013E net production expected to average 40,000 to 47,000 boepd (excluding Barda Rash)
Significant exploration success
- E&A success ratio of 88%
- 265% reserves replacement ratio - net working interest 2P reserves addition of 39 mmbbls (gross 76 mmbbls and excluding Ain Sifni) to 210 mmboe
Group pro-forma net 2P reserves expected to increase to approximately 270 mmboe after consolidation of OML 26 reserves
- following exercise of a put option by a third party over FHN shares (subject to shareholder approval)
Multi-well E&A drilling campaign targeting Pmean resources of 650 mmboe
- Okwok appraisal success confirms management view of 52 mmbbls gross recoverable reserves (net working interest 29 mmbbls)
- Simrit-3 well confirms eastern extent of anticline
Strong balance sheet
- net debt, excluding finance leases US$488 million (31 December 2011: US$548 million)
- US$300m senior secured Ebok facility signed (post period end), replacing the existing Ebok RBL facility. Pro-forma net debt unchanged
Repeatable strategy - continue to create significant shareholder value
Commenting today, Osman Shahenshah, Chief Executive, said:-
"In 2012 we achieved record financial results driven by strong production growth at our greenfield developments offshore Nigeria. We realised an E&A success ratio of 88% and a 2P reserves replacement ratio of 265%. We have started our 2013 multi-well E&A campaign with success at Okwok, offshore Nigeria, and Simrit-2 and Simrit-3, in the Kurdistan region of Iraq. With a track record of project delivery, exploration success and strategic acquisitions, we are well placed to continue to create significant value for shareholders."
