In its interim management statement and financial results for the nine months ended 30 September 2014 and an update on its operations year-to-date 2014, which was released recently in accordance with the reporting requirements of the EU Transparency Directive, the company said the Final Investment Decision sanctioned on Okoro Further Field Development and Aje would be sealed in the fourth quarter of 2014.
According to the statement, the installation of the Ebok Central Fault Block Extension platform is expected in Q4 2014; while batch drilling on Ebok North Fault Block is underway.
The statement added that the Wellhead jacket fabricated at Okwok would be installed in Q4 2014.
Key highlights of the results showed that the average net production for the nine months to 30 September 2014 at 31,377 barrels of oil equivalent per day (bopd), with full year 2014 net production guidance range (excluding Barda Rash) maintained at between 32,000 to 36,000 bopd with new incremental production wells now on-stream
The results also showed that profit after tax of $167 million, compared to $129 million in Q3 2013 reflected tax exemption at Ebok offsetting reduction in pre-tax profit and revenue.
Afren noted that the balance sheet remains strong with net assets of $1,981 million
The company also stated that drilling campaign was underway on OML 26, with drilling ongoing on the second producer with a third producer to spud in late 2014.
Commenting on the results the Interim Chief Executive Officer of the company, Mr. Toby Hayward, said the company’s board was pleased to have received the results of the independent review by Willkie Farr and Gallagher (UK) LLP (WFG), adding that the board is in the process of implementing its recommendations.
“Management remains focused on operational performance, having made good progress on our core development projects in Nigeria, which are expected to drive significant growth in production and cash flow in the medium-term. We are moving forward with our play-opening discovery at Ogo, while we continue to de-risk an exciting set of exploration opportunities across our portfolio,” he added.
Afren delivered average net production (excluding Barda Rash) in the period to 30 September 2014 of 31,147 bopd, compared to 48,305 bopd in Q3 2013 and below the company’s full year production guidance range of between 32,000 to 36,000 bopd.
“This was principally due to the on-going delays with the installation of the Ebok Central Fault Block (CFB) extension due to adverse weather conditions and additional downtime at OML 26 in July, as a result of repair work by SPDC on the Trans Forcados pipeline. With new incremental production wells now on-stream and close to completion across all of our existing producing assets in Nigeria, the Company remains on-track to achieve full year net production at the lower end of guidance of between 32,000 to 36,000 bopd,” the statement explained.
At the Ebok field, the company said gross production averaged 27,277 bopd during the period.
However, adverse weather conditions have delayed the installation of the CFB extension platform and the planned three producers targeting additional reservoirs in the CFB.
According to the company, the installation of the CFB extension platform is now expected to complete in Q4 as soon as the weather conditions permit.
*Ejiofor Alike – Thisday