KrisEnergy Ltd., an independent upstream oil and gas company, has reported that its revenues fell 46.2% to $11.4 million for the first quarter of 2015, compared with $21.2 million in 1Q 2014.
According to the company, this is due to the average oil price realised by the KrisEnergy group dropping to $53.20 per barrel (bbl) compared with $108.04/bbl in 1Q 2014.
KrsiEnergy says that gas prices at the B8/32 and B9A fields in the Gulf of Thailand were less volatile, decreasing 9% from a year ago to an average $5.63 per thousand cubic feet (mcf). The gas price for sales from the Bangora field onshore Bangladesh remained constant over both quarterly periods at $2.32/mcf.
Group production in 1Q 2015 averaged 7,699 barrels of oil equivalent per day (boepd), flat from the 2014 average of 7,612 boepd but lower than the first quarter 2014 (1Q 2014) when volumes touched 8,000 boepd as several better-than-expected new development wells were brought on stream in the Thai producing assets.
Furthermore, EBITDAX was $9.3 million in 1Q 2015 compared to $9.9 million in 1Q 2014.
Net profit after tax was $47.2 million compared to a net loss of $18 million in the same period in 2014.
In its first quarter results, the company emphasized that cost control and maximising production efficiencies will continue to be a strategic focus for the Group.
Keith Cameron, Chief Executive Officer, commented: “There is no doubt that these are challenging times for the upstream oil and gas sector. The crash in oil prices is reflected directly on the bottom line but gas prices in Asia have remained relatively resilient. This supports our strategy of a balance of oil and gas in the portfolio, which will be underpinned when two oil developments in Thailand begin production in the second half of the year. These fields will bring our oil/gas production ratio to around 50:50. It is essential that we continue to focus on cost reductions in this lower oil price environment.
“Operationally, we are fully focused on bringing on stream the Wassana oil field in the Gulf of Thailand where we are making good progress and have completed refurbishment of key equipment and are preparing for installation. The Nong Yao development is also pressing ahead and we remain on track for first oil. We have enjoyed five successful exploration wells at the start of 2015, and we will further investigate these discoveries over the next few months to get them over technical and commercial thresholds and into our pipeline of development projects.”
Capital expenditure in the first three months 2015 included $1.8 million for KrisEnergy’s working interest share of development well drilling in B8/32 and B9A; $17.5 million for exploration and development activities at G10/48, including the refurbishment of the mobile offshore production unit (MOPU) and fabrication of associated equipment; $5.8 million for development costs in G11/48; $2.3 million for exploration drilling expenditure in G6/48; and $7.4 million relating to seismic acquisition programs in the Udan Emas PSC in West Papua, Indonesia, and the SS-11 exploration licence offshore Bangladesh.