GREY:SDRYF - Post by User
Post by
jd5212on May 26, 2013 10:40pm
337 Views
Post# 21444395
Q1 & Update
Q1 & Update Egypt: Sea Dragon Energy announces Q1 results - updates Egypt operations
27 May 2013
Sea Dragon Energy has announced its 2013 first quarter financial and operating results and provided an update on its operations in Egypt.
Highlights:
- Production increased by 47% to average 1,495 bopd for the quarter (Q1 2012: 1,019 bopd)
- Revenues increased by 34% to US$14.3 MM @ US$106.28/bbl realized price (Q1 2012: US$10.7 MM @$115.10/bbl price)
- Netbacks increased by 36% to US$5.3MM @ US$39.41/bbl (Q1 2012: US$3.9M @$41.93/bbl)
- Cash flow from operations increased by 394% to US$1.9MM (Q1 2012: US$0.4MM)
- US$5.6MM cash and cash equivalents at end of Q1 2013
- US$6.8MM of non-cash working capital and no net debt at end of Q1 2013
- Realized a net loss of US$6.4MM, due to an impairment charge of US$7.2MM on the Company’s Kom Ombo concession, related to West Al Baraka field. The Company has now completed its impairment review of Kom Ombo, pursuant to the 2012 and Q1 2013 tests.
Post First Quarter events:
- Production currently stands at 1,959 boepd as the Shukheir Marine well (SHB-5) was returned to production after a workover in February that affected the average production level for the quarter. Quarter end production was 92% above Q1 2012
- Collected US$2.2MM in outstanding accounts receivable
- Paid back US$1.0MM of debt, resulting in a cash balance of US$4.0MM and nil net debt
- Awarded the South Disouq Exploration Concession in the Nile Delta in the EGAS bid round.
Sea Dragon CEO, Paul Welch, commented:
'Q1 2013 has proved to be a strong first period for the Company. We remain focused on increasing production which provides a solid foundation to deliver on our growth strategy throughout 2013 and beyond. The increased operating cash flow has enabled the Company to maintain a solid cash position with no net debt as we continue to develop our existing assets which have significant resource upside.
Sea Dragon is also well placed to capitalise on the current market situation in Egypt where the opportunity for transformational growth exists through participation in exploration bid rounds and potential acquisitions of discounted assets, supported by a management team with strong in-country relationships and expertise. Our recent success in acquiring Shukheir Marine and in the EGAS bid round award of the South Disouq exploration block will underpin the next step in our growth process. I look forward to our continued success in both increasing production and cash flow from our existing assets while adding new assets to our portfolio.'
Click here for full announcement
Source: Sea Dragon Energy