NIDO PETROLEUM LIMITED 2016 Activities Report
For the period ending 31 March 2016
Nido's net production from the Galoc oil field during the first quarter was 283,170 bbls on a 55.88% par- ticipating interest basis
Production uptime for the Galoc oil field was 99.93% during the quarter and average gross daily pro- duction was 5,569 bopd (3,112 bopd net to Nido)
Cargo 50 was lifted on 13 February 2016 with the total lifted volume of 354,340 (198,003 bbls net to Nido)
Cyclical production continued from the Nido and Matinloc oil fields (7,955 bbls net to Nido)
Nido completed a restructure of its Facility Agreement with the Bangchak Petroleum Public Company Limited
I am pleased to provide to you the following summary of the Company's activities for Q1 2016.
Galoc up-time was 99.93% for the quarter with gross average daily oil production of 5,569 bbls (3,112 bopd on a net to Nido basis) with total production of 506,751 bbls (283,170 bbls net to Nido).
The Nido and Matinloc oil fields continued to produce oil on a cyclical basis during the quarter. Oil production from these fields totalled 30,483 bbls (7,955 bbls net to Nido).
During the quarter the Department of Energy approved the Company's request for a moratorium and an amendment to the Sub-Phase 3 Work Program for SC 63.
The Galoc Joint Venture continued to progress sub-surface and preliminary engineering studies and is still considering a possible appraisal well in the mid-Galoc area of the field to confirm the commerciality of a potential Phase III develop- ment project.
The Company also continued to evaluate exploration, devel- opment and production assets in the region and is consider- ing a number of assets in this context.
Nido successfully completed a restructure of its Facility Agreement with the Bangchak Petroleum Public Company Limited.
Under the terms of the restructure principal and interest pay- ments are deferred until March 2018 and the facility interest rate no longer increases by 2% per year but is capped at 6% plus LIBOR.
The restructure therefore provides the Company with flexibil- ity to manage its cashflow requirements over the next 2 year period and secures the Company significant savings in inter- est payments over the life of the loan.
DR MIKE FISCHER MANAGING DIRECTOR
Nido Petroleum Limited ABN 65 086 373 www.nido.com.au
Level 3, 1 Preston St, Como WA 6152 Australia P: +61 8 9474 0000 F:+61 8 9474 0099
4F Zaragoza Building, 102 Gamboa Street, Legaspi Village, Makati City, 1229 Philippines P: +63 2 773 2700 F: +63 2 773 2701
LIFTING SUMMARY Volumes - Lifted & Sold (stb) | Qtr 1 2016 | Year-to-date 2016 | Previous Qtr Q4 2015 |
Service Contract 14: | 198,003 | 198,003 | 399,539 |
Galoc oil field (net to Nido) | |||
Nido & Matinloc oil fields (net to Nido)* | 4,125 | 4,125 | 11,469 |
TOTAL VOLUMES LIFTED & SOLD | 202,128 | 202,128 | 411,008 |
FINANCIAL SUMMARY | |||
Cash Inflows- US$ '000 | |||
Receipts from sale of crude oil | 13,046 | 13,046 | 8,762 |
Interest & other | 899 | 899 | 46 |
Refund of development expenditure | 379 | 379 | - |
Proceeds from debt facility | - | - | - |
TOTAL CASH INFLOWS | 14,324 | 14,324 | 8,808 |
Cash Outflows-US$ '000 | |||
Exploration expenditure | (572) | (572) | (924) |
Development expenditure | - | - | - |
Production OPEX | (10,697) | (10,697) | (5,341) |
Income taxes | - | - | (1,680) |
Repayment of borrowings & financing costs | (14,373) | (14,373) | (512) |
Administration & other expenses | (1,110) | (1,110) | (1,216) |
Foreign exchange movement & other | (10) | (10) | (11) |
TOTAL CASH OUTFLOWS | (26,762) | (26,762) | (9,684) |
Cash Position - US$ '000 | |||
Cash on Hand 5,093 | 5,093 | 17,531 | |
Debt - Secured Debt Facility (78,200) | (78,200) | (88,200) | |
* Nido and Matinloc figures are subject to change based on the latest lifting/production volume adjustment from the Operator
Nido ended the quarter with cash on hand of US$5.1 million and debt outstanding of US$78.2 million.
INFLOWS
Galoc production was steady and cash inflows from crude oil sales totalled US$13.0 million with receipts from 2 cargoes received in the reporting period. There were no cash receipts received from the Nido/Matinloc oil fields for this quarter.
Interest & other inflows include an amount of US$0.898 million received on settlement of 2 crude oil hedge put options during the quarter. Funds were received as a result of the put option strike prices being higher than the average Brent oil price for the months of December 2015 and February 2016.
During the quarter Nido received a cash inflow of $US0.379 million from the Galoc Joint Venture. This represents a refund of excess cash call funds held by the Joint Venture at the completion of the Galoc Phase II development.
OUTFLOWS
Cash outflows from production operations at the Galoc oil field and the Nido/Matinloc oil fields amounted to US$10.3 million. Cost of crude oil hedge put options amounted to US$0.4 million.
Cash outflows for exploration activities of US$0.6 million relate mainly to new venture and exploration activity.
Payment of interest and other financing relates to the renegotiation of the Facility Agreement with the Bangchak Petroleum Public Company Limited ('BCP') with the total cost of US$14.4 million comprised of a principal repayment of US$10.0 million and $4.4 mil- lion in interest payments.
There were no income tax expense payments and general administration expenditure totalled US$1.1 million for the quarter.
PRELIMINARY (UNAUDITED) Q1 FINANCIAL INFORMATION
Nido has provided preliminary Q1 financial information to BCP Energy International Pte Ltd ('BCPE') for their quarterly reporting process. The preliminary financial information is unaudited and subject to change and is set out in the following table:
Statement of Comprehensive Income for the three months ending 31 March 2016 (US$ '000) Revenue from sale of crude oil | 31 March 2016 6,544 |
EBIT | (5,073) |
Net (loss) for the quarter ended 31 March 2016 | (6,049) |
Balance Sheet as at 31 March 2016 (US$ '000) Current Assets | 23,582 |
Non-current Assets | 141,353 |
Current Liabilities | 20,966 |
Non-current Liabilities | 108,122 |
Net Assets | 35,847 |
Statement of Cash Flows for the three months ending 31 March 2016 (US$ '000) | |
Net cash (used in) operating activities | (2,327) |
Net cash (used in) investing activities | (101) |
Net cash (from) financing activities | (10,000) |
SERVICE CONTRACT 14C1 - GALOC OIL FIELD
Location: | Palawan Basin, Philippines | ||
Area: | 16,000 hectares | Operator: | Galoc Production Company W.L.L. |
Nido's Interest: | 55.88% | Activity: | Galoc Production |
Gross production from the Galoc oil field during the quarter was 506,751 bbls (283,170 bbls net to Nido) with a gross average pro- duction rate of 5,569 bopd (3,112 bopd net to Nido).
Cargo 50 was lifted on 13 February 2016 with 354,340 bbls (198,003 bbls net to Nido) with a realised FOB price of US$31.27 per bbl. Cargo 50 was sold to SK Energy in South Korea.
Galoc Phase II Production
The Joint Venture is still considering a possible appraisal well in the mid-Galoc area to confirm the commerciality of a potential Phase III development. In this context the Joint Venture continued to pro- gress relevant sub-surface and preliminary engineering studies.
Nido Petroleum Limited issued this content on 21 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 April 2016 07:36:49 UTC
Original Document: http://www.nido.com.au/IRM/PDF/2476/QuarterlyReportandAppendix5BQ12016
