NIDO PETROLEUM LIMITED 2015 Activities Report
For the period ending 31 December 2015
Nido's net production from the Galoc oil field during the fourth quarter was 293,381 bbls on a 55.88% participating interest basis
Production uptime for the Galoc oil field was 99.51% during the quarter and average gross daily pro- duction was 5,707 bopd
Cargoes 48 and 49 were lifted on 10 October 2015 and 09 December 2015 respectively with the total lift- ed volume of 347,883 (194,395 bbls net to Nido) for cargo 48 and a total lifted volume of 367,117 (205,143 bbls net to Nido) for cargo 49
Cyclical production continued from the Nido and Matinloc oil fields (9,072 bbls net to Nido)
Nido ended the quarter with US$17.5 million cash on hand
I am pleased to provide to you the following summary of the Company's activities for Q4 2015.
Galoc up-time was 99.51% for the quarter with gross average daily oil production of 5,707 bbls (3,189 bopd on a net to Nido basis) with total production of 525,024 bbls (293,381 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 36,109 bbls (9,072 bbls net to Nido). A total of 37,776 bbls (9,573 bbls net to Nido) was lifted and sold dur- ing the quarter.
In relation to the potential Galoc Phase III development, the Joint Venture continued to progress sub-surface and prelimi- nary engineering studies and is still considering a possible appraisal well in the mid-Galoc area of the field to confirm the commerciality of the project.
The Company has continued to evaluate new exploration, development and production assets and is actively consider- ing a number of opportunities. We will update the market with any material developments.
During the current challenging oil price environment, the Company is continuing to take all steps necessary to maxim- ise shareholder return by embarking on significant cost- cutting initiatives and reducing expenditure where possible.
Despite the difficult external environment we remain optimis- tic that Nido will be able to identify and capitalise on the good
growth opportunities that the downturn will create.
We look forward to meeting the challenges of the year ahead and to position Nido for significant future growth.
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 4 2015 | Year-to-date 2015 | Previous Qtr Q3 2015 |
Service Contract 14: | 399,539 | 1,250,000 | 194,414 |
Galoc oil field (net to Nido) | |||
Nido & Matinloc oil fields (net to Nido)* | 9,573 | 34,080 | 6,589 |
TOTAL VOLUMES LIFTED & SOLD | 409,112 | 1,284,080 | 201,003 |
FINANCIAL SUMMARY | |||
Cash Inflows- US$ '000 | |||
Receipts from sale of crude oil | 8,762 | 57,272 | 21.383 |
Interest & other | 46 | 1,203 | 1,148 |
Proceeds from debt facility | - | 108,000 | - |
TOTAL CASH INFLOWS | 8,808 | 166,475 | 22,531 |
Cash Outflows-US$ '000 | |||
Exploration expenditure | (924) | (3,681) | (974) |
Development expenditure | - | - | - |
Production OPEX | (5,341) | (35,811) | (11,910) |
Income taxes | (1,680) | (3,919) | - |
Repayment of borrowings & financing costs | (512) | (35,800) | (4,002) |
Equity investment - GPC | - | (73,041) | - |
Administration & other expenses | (1,216) | (5,495) | (1,312) |
Foreign exchange movement & other | (11) | (108) | (86) |
TOTAL CASH OUTFLOWS | (9,684) | (157,855) | (18,284) |
Cash Position - US$ '000 | |||
Cash on Hand 17,531 | 17,531 | 18,407 | |
Debt - Secured Debt Facility (88,200) | (88,200) | (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$17.5 million and debt outstanding of US$88.2 million.
INFLOWS
Galoc production was steady and cash inflows from crude oil sales totalled U$8.8 million with receipts from cargo 48 received in the reporting period. The proceeds from cargo 49 were received in January 2016. There were no cash receipts received from the Nido/ Matinloc oil fields for this quarter.
Interest & other inflows include an amount of US$0.043 million received on settlement of a crude oil hedge put option on 6 Novem- ber 2015. Funds were received as a result of the put option strike price being higher than the average Brent oil price for the month of October.
OUTFLOWS
Cash outflows from production operations at the Galoc oil field and the Nido/Matinloc oil fields amounted to US$5.3 million.
Cash outflows for exploration activities of US$0.9 million relate mainly to new venture exploration expenses and expenditure relating to the mid-Galoc area studies.
Payment of interest and other financing costs of US$0.5 million primarily relates to the revolving debt loan facility entered into with Bangchak Petroleum Public Company Limited ('BCP'). No principal repayments were made to BCP during the quarter.
There was a tax expense payment of US$1.7 million and general administration expenditure totalled US$1.2 million for the quarter.
PRELIMINARY (UNAUDITED) Q4 FINANCIAL INFORMATION
Nido has provided preliminary Q4 financial information to BCP Energy International Pte Ltd ('BCPE') for their quarterly and year-end re- porting processes. The preliminary financial information is unaudited and subject to change and is set out in the following table:
Statement of Comprehensive Income for the year ending 31 December 2015 (US$ '000) Revenue from sale of crude oil | 31 December 2015 68,374 |
EBIT | (14,684) |
Net (loss) for the year ending 31 December 2015 | (20,696) |
Balance Sheet as at 31 December 2015 (US$ '000) Current Assets | 38,323 |
Non-current Assets | 158,432 |
Current Liabilities | 24,032 |
Non-current Liabilities | 120,292 |
Net Assets | 52,431 |
Statement of Cash Flows for the year ending 31 December 2015 (US$ '000) | |
Net cash from operating activities | 4,853 |
Net cash (used in) investing activities | (73,097) |
Net cash (from) financing activities | 76,972 |
SERVICE CONTRACT 14C1 - GALOC OIL FIELD
Location: | Palawan Basin, Philippines | ||
Area: | 16,000 hectares | Operator: | Nido (GPC) |
Nido's Interest: | 55.88% | Activity: | Galoc Production |
Gross production from the Galoc oil field during the quarter was 525,024 bbls (293,381 bbls net to Nido) with a gross average pro- duction rate of 5,707 bopd (3,189 bopd net to Nido).
Cargo 48 was lifted on 10 October 2015 with 347,883 bbls (194,395 bbls net to Nido) with a realised FOB price of US$47.04 per bbl. Cargo 48 was sold to Singapore Petroleum Company in Singapore.
Cargo 49 was lifted on 09 December 2015 with 367,117 bbls (205,143 bbls net to Nido) with a realised FOB price of US$37.59 per bbl. Cargo 49 was sold to Thai Oil Public Co. Ltd in Thailand.
Galoc Phase II Production
In relation to the potential Phase III development, the Joint Venture continued to progress relevant sub-surface and preliminary engi-
neering studies. The Joint Venture is still considering a possible appraisal well in the mid-Galoc area to confirm the commerciality of the Phase III development.
Testing of the hydraulic swivels on the FPSO's riser turret mooring system was carried out during the quarter. The test results con- firmed the hydraulic swivels have the required technical integrity to maintain safe and reliable production. As a result, repair of the hy- draulic swivels was not required and Galoc production was main- tained at full rates throughout the quarter. The integrity of the hy- draulic swivels is monitored and tested on an ongoing basis.
Nido Petroleum Limited issued this content on 2016-01-22 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-22 06:34:05 UTC
Original Document: http://www.nido.com.au/IRM/PDF/2454/QuarterlyReportandAppendix5BQ42015
