Fourth quarter ended 31 December 2018 (Fourth quarter ended 31 December 2017)
- Revenue of TUSD 2,843 (TUSD 2,295), up 24%
- EBITDA of TUSD 5,653 (TUSD 433)
- Operating result of TUSD 5,112 (TUSD -392)
- Net result for the period of TUSD 3,116 (TUSD -2,110)
- Earnings per share (basic and diluted) amounted to 0.07 USD per share (USD -0.05)
- Results positively affected by TUSD 5,186 revaluation of CoreTerra acquisition
- Proved oil and gas reserves increased to 22,758 (20,964) thousand barrels of oil equivalent, ("MBOE") with a Net Present Value of 265 million USD (151 million USD)
Twelve months ended 31 December 2018 (Twelve months ended 31 December 2017)
- Revenue of TUSD 11,046 (TUSD 9,234), up 20%
- EBITDA of TUSD 6,022 (TUSD 1,400)
- Operating result of TUSD 4,422 (TUSD -560)
- Net result for the period of TUSD -3,490 (TUSD -7,126)
- Earnings per share (basic and diluted) amounted to -0.08 USD per share (USD -0.18)
- MUSD 6.2 acquisition of 4 million boe in proven reserves completed and funded by a directed share issue and debt
- Results positively affected by TUSD 5,186 revaluation of CoreTerra acquisition
- Proved oil and gas reserves increased to 22,758 (20,964) thousand barrels of oil equivalent, ("MBOE") with a Net Present Value of 265 million USD (151 million USD)
| Fourth quarter 2018 | Fourth quarter 2017 | Twelve months 2018 | Twelve months 2017 | |
| Operational results | ||||
| Gross crude oil production, bbl | 40,706 | 30,363 | 140,294 | 127,080 |
| Gross gas and natural liquids production, mcf | 200,554 | 173,536 | 743,709 | 707,543 |
| Total, boepd | 806 | 644 | 724 | 671 |
| Net crude oil production, bbl | 33,406 | 24,325 | 115,184 | 103,714 |
| Net gas and natural liquids production, mcf | 150,545 | 125,896 | 561,668 | 523,251 |
| Total, boepd | 636 | 492 | 572 | 523 |
| Average selling price oil, USD/bbl | 56.69 | 51.86 | 61.91 | 47.53 |
| Average selling price gas USD/mcf | 6.54 | 8.14 | 6.72 | 6.78 |
| Financial results | ||||
| Revenue, TUSD | 2,843 | 2,295 | 11,046 | 9,234 |
| EBITDA | 5,653 | 433 | 6,022 | 1,400 |
| Operating result | 5,112 | -392 | 4,422 | -560 |
| Result for the period | 3,116 | -2,110 | -3,490 | -7,126 |
| Earnings per share (basic and diluted), USD | 0.07 | -0.05 | -0.08 | -0.18 |
Dear Shareholders,
As we summarize 2018, Matra Petroleum continued to progress and develop its operations:
- 17 new production wells were successfully drilled
- CoreTerra acquisition completed, revalued and integrated into operations
- Oil and gas net reserves increased by 9%
- Reserves valued at 265 MUSD, an increase of 75%
- Oil and gas production increased by 10%
In 2018, Matra invested 13 MUSD and added net reserves of 2.1 million boe, implying a reserve replacement cost of USD 6.19 per boe, net. 2018 production was replaced 7.7 times. Producing reserves increased by 40%, providing a broader production base. Successful drilling at the Lyall lease has opened up a new area for future drilling and expanded Matra's development potential. Increased reserves and higher oil and gas prices improved the net present value of Matra's reserves by 75%.
Our targets for 2018 were to drill 24 wells and to double daily production by yearend. We now have capacity to produce in line with this target, although average production volumes remain sensitive to third party gas processing capacity and weather conditions affecting infrastructure during winter months. We postponed the drilling of the last 7 wells until this year in response to weather conditions and the rapid drop in oil prices in the fourth quarter.
Oil and gas markets were supportive in the first three quarters of the year with sequentially higher price realisations. However, in the fourth quarter oil price volatility increased and prices dropped significantly. We experienced both the highest and the lowest oil prices in the year during Q4. Overall in 2018, average realized oil prices increased substantially while gas price realisations were essentially flat. Oil markets have recovered somewhat in early 2019.
In 2018, Matra recorded its third consecutive year of revenue growth driven by higher production and prices. Revenues increased by 20% year-on-year and 24% quarter on quarter. In the fourth quarter, oil and gas production increased compared to same quarter last year and was in line with the preceding quarter. Low temperatures in northern Texas, that affected flow lines and compressors, and the quick drop in oil prices affected fourth quarter operations and production and resulted in lower revenues than in the preceding quarter.
Results for year and the fourth quarter 2018 increased significantly compared to prior periods. In Q2, Matra completed the acquisition of CoreTerra's oil and gas leases. The purchase price was significantly lower than the net present value of the acquired oil and gas reserves as per the reserve evaluation. Therefore, a gain on bargain purchase of 5.2 MUSD was recorded which affected the financial results positively. EBITDA for the fourth quarter was further affected by lower revenues and supported by positive hedging effects. For the 12 months, EBITDA was affected by realized losses on hedging positions.
Matra Petroleum enters 2019 with a broader reserve and production base, increased production and reserve values, expanded development potential and recovering oil markets supporting our efforts. From this basis, we plan to launch an expanded drilling program in the spring of 2019, to provide for further production growth in the second half of the year. We also continue to explore options to improve the debt portfolio and reduce financing cost. Matra Petroleum's main objectives remain to continue to add value to our oil and gas reserves and further improve operational and financial performance.
22 February 2019
Maxim Barskiy
Chief Executive Officer
This report has not been subject to review by the auditors of the Company.
For more information, please contact:
Maxim Barskiy, CEO, Matra Petroleum AB (publ)
Phone number: +46 8 611 49 95
E-mail: IR@matrapetroleum.com
Investor Relations
Email: IR@matrapetroleum.com
Website: www.matrapetroleum.com
Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550
E-mail: info@mangold.se
Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 103 90 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: ir@matrapetroleum.com
This information is information that Matra Petroleum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 CET on 22 February 2019.
Matra Petroleum AB (publ) is a Swedish independent oil and gas exploration and production company operating in the United States, where the company owns and operates 170 leases, covering an area of 45,640 net acres in the Panhandle region in Texas. Matra's proved oil and gas reserves amount to approximately 22.8 million barrels of oil equivalent. Matra Petroleum's shares are traded on NASDAQ First North in Sweden under the symbol MATRA. Mangold Fondkommission AB is Certified Adviser (www.mangold.se Tel: +46 (0) 8 50 30 1550, Email: CA@mangold.se).
