RE: RE: Next stop on leg down $1.70... From Lochard:
Lochard Energy Group Plc Directors’ report and financial statements 30 June 2012 10 Operational Overview (continued)
OUTLOOK
The Athena field finally came on stream with first oil in May 2012, which was a very significant event for the Company. This is our first offshore oilfield development and was originated in-house by our current technical team. Although production has not been what was initially expected from Athena, current rates are still delivering more than 1,000 bopd net to the Company and Lochard does not believe that reserve potential has been affected by these early production restrictions. Lochard is hopeful that production performance over the next year or two will confirm reserve potential closer to the independent Sproule estimates, which are based on a less conservative view of the field from that presented in the Field Development Plan.
The start of production from Athena provides Lochard with a stream of cash flow which will increase as various short term liabilities are settled. Further development potential may be identified and agreed in the next two years.
Peter Kingston, Non-executive Director
20 September 2012