Maurel & Prom

Activity in the First Half of 2021

Regulatory News:

Maurel & Prom (Paris:MAU):

Key indicators for the first half of 2021

 

 

 

 

 

 

 

 

 

 

Q1

2021

Q2

2021

 

H1

2021

 

H1

2020

H2

2020

Change H1 2021
vs

H1 2020

H2 2020

 

 

 

 

 

 

 

 

 

 

 

M&P working interest production

 

 

 

 

 

 

 

 

 

Gabon (oil)

bopd

15,120

15,256

 

15,189

 

18,134

15,671

-16%

-3%

Angola (oil)

bopd

3,333

3,786

 

3,561

 

4,108

3,759

-13%

-5%

Tanzania (gas)

mmcfd

40.7

36.5

 

38.6

 

28.0

34.9

+38%

+11%

Total

boepd

25,240

25,124

 

25,182

 

26,917

25,243

-6%

-0%

 

 

 

 

 

 

 

 

 

Average sale price

 

 

 

 

 

 

 

 

 

 

Oil

$/bbl

57.3

68.5

 

63.0

 

34.6

45.5

+82%

+38%

Gas

$/mmBtu

3.34

3.35

 

3.35

 

3.32

3.31

+1%

+1%

 

 

 

 

 

 

 

 

 

Sales

 

 

 

 

 

 

 

 

 

 

Gabon

$mm

71

80

 

151

 

119

122

+27%

+24%

Angola

$mm

12

16

 

28

 

20

20

+38%

+39%

Tanzania

$mm

13

12

 

25

 

17

26

+49%

-7%

Valued production

$mm

96

108

 

204

 

156

169

+31%

+21%

Drilling activities

$mm

0

0

 

1

 

6

0

 

 

Restatement for lifting imbalances and inventory revaluation

$mm

-11

-6

 

-16

 

-20

19

 

 

Consolidated sales

$mm

85

102

 

188

 

142

188

+32%

+0%

M&P’s working interest production stood at 25,182 boepd in H1 2021, relatively unchanged from H2 2020 (25,243 boepd), with production declines in Gabon and Angola being offset by increased gas production in Tanzania.

The average sale price of oil was $63.0/bbl for the period, up 82% versus H1 2020 ($34.6/bbl) and 38% versus H2 2020 ($45.5/bbl).

The Group’s valued production (income from production activities, excluding lifting imbalances and inventory revaluation) stood at $204 million for H1 2021, a rise of 31% versus H1 2020 and 21% versus H2 2020. The restatement of lifting imbalances ($38 million produced but not lifted during the period, which saw just two liftings for the Group), net of inventory revaluation, had a negative impact of $16 million in the first half of the year. As a result, the Group’s consolidated sales for first-half 2021 came in at $188 million.

Production activities

• Gabon

M&P’s working interest oil production (80%) on the Ezanga permit was 15,189 bopd (gross production: 18,986 bopd) in H1 2021, stable compared with the production level of H2 2020 (15,671 bopd for M&P working interest). The lack of drilling since March 2020 adversely affected the fields’ production potential, which currently stands at around 21,000 bopd (gross).

After production cuts imposed under OPEC quotas came to an end, M&P resumed development drilling in the middle of July, which is expected to significantly increase the production potential. A campaign of stimulation operations also began in mid-July to optimise the production and injectivity of some existing wells.

• Tanzania

M&P’s working interest gas production (48.06%) on the Mnazi Bay permit stood at 38.6 mmcfd (gross production: 80.30 mmcfd) for H1 2021, up 38% from H1 2020 and up 11% from H2 2020. The low seasonal demand usually observed during the rainy season (which more or less coincides with Q2) did not materialise this year, and M&P’s working interest production came in at 36.5 mmcfd in Q2 2021, versus 25.4 mmcfd in Q2 2020.

A presentation adjustment explains the relative decline in sequential sales versus H2 2020, despite higher production. It should be noted that this adjustment does not affect operating income.

• Angola

M&P’s working interest production (20%) in Block 3/05 in H1 2021 was 3,561 bopd (gross production: 17,804 bopd). Output from the asset rose sharply in Q2 2021 (up 14% from Q1 2021) following the completion of maintenance work, which had caused operations to be suspended or significantly reduced at the end of February and throughout March.

Workover operations are planned for the second half of 2021, which should in particular see production resume on Block 3/05A.

Financial position

M&P’s cash position at 30 June 2021 was $167 million, relatively unchanged from 31 December 2020 ($168 million) due to just two liftings during the period. M&P nevertheless repaid $41 million in debt in H1 2021, reducing its total debt to $580 million. At end-June 2021 net debt stood at $413 million, versus $455 million as of 31 December 2020.

As announced in the first quarter 2021 press release, the sum of $43 million corresponding to the debt owed by Gabon Oil Company (GOC) to M&P in respect of pre-2018 carrying costs remains frozen in an escrow account. Discussions are now at an advanced stage with GOC and the Gabonese authorities to find a positive and constructive resolution to this situation, and also to other matters currently ongoing with the Gabonese Republic.

French						English
pieds cubes		pc		cf		cubic feet
millions de pieds cubes par jour		Mpc/j		mmcfd		million cubic feet per day
milliards de pieds cubes		Gpc		bcf		billion cubic feet
baril		B		bbl		barrel
barils d’huile par jour		b/j		bopd		barrels of oil per day
millions de barils		Mb		mmbbls		million barrels
barils équivalent pétrole		bep		boe		barrels of oil equivalent
barils équivalent pétrole par jour		bep/j		boepd		barrels of oil equivalent per day
millions de barils équivalent pétrole		Mbep		mmboe		million barrels of oil equivalent

For more information, visit www.maureletprom.fr.

This document may contain forward-looking statements regarding the financial position, results, business and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.

Maurel & Prom is listed for trading on Euronext Paris
CAC All-Tradable – CAC Small – CAC Mid & Small – Eligible PEA-PME and SRD
Isin FR0000051070/Bloomberg MAU.FP/Reuters MAUP.PA

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