MAU Maurel Et Prom

• M&P’s working interest production in first-half 2021: 25,182 boepd
  • Production of 15,189 bopd for M&P’s working interest on the Ezanga permit in Gabon, relatively unchanged from H2 2020 (15,671 bopd) pending the resumption of development drilling
  • Production of 3,561 bopd for M&P’s working interest in Angola and 38.6 mmcfd in Tanzania

• Valued production of $204 million for the half year, up sharply as a result of the significant increase in crude prices
  • Average sale price of oil up to $63.0/bbl, a rise of 82% versus H1 2020 ($34.6/bbl) and 38% versus H2 2020 ($45.5/bbl)
  • Sales of $188 million after taking into account drilling activities ($1 million) and the restatement for lifting imbalances and inventory revaluation, which had a negative impact of $16 million (only two liftings during the period)

• Continuing debt reduction and resumption of development activities
  • Net debt down to $413 million versus $455 million as of 31 December 2020, thanks to debt repayments of $41 million during the first half and a stable cash position ($167 million at 30 June 2021 versus $168 million on 31 December 2020)
  • Development drilling on the Ezanga permit resumed in mid-July, in parallel with a stimulation campaign on existing wells, in order to restore the production potential of the fields

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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Maurel & Prom Press, shareholder and investor relations +33 (0)1 53 83 16 45 ir@maureletprom.fr

NewCap Financial communications and investor relations/Media relations Louis-Victor Delouvrier/Nicolas Merigeau +33 (0)1 44 71 98 53/+33 (0)1 44 71 94 98 maureletprom@newcap.eu