Third quarter ended 30 September 2018 (Third quarter ended 30 September 2017)
Nine months ended 30 September 2018 (Nine months ended 30 September 2017)
|Third quarter 2018||Third quarter 2017||Nine months 2018||Nine months 2017||Twelve months 2017|
|Gross crude oil production, bbl||38,947||33,745||99,588||96,717||127,080|
|Gross gas and natural liquids production, mcf||220,564||190,869||543,155||534,007||707,543|
|Net crude oil production, bbl||31,998||27,782||81,778||79,389||103,714|
|Net gas and natural liquids production, mcf||167,169||141,181||411,123||397,355||523,251|
|Average selling price oil, USD/bbl||66.16||44.89||65.16||46.18||47.53|
|Average selling price gas USD/mcf||6.82||6.91||6.78||6.35||6.78|
|Result for the period||-1,735||-1,795||-6,607||-5,016||-7,126|
|Earnings per share (basic and diluted), USD||-0.04||-0.05||-0.16||-0.13||-0.18|
In the third quarter, Matra continued to execute the drilling and development program which resulted in accelerated growth and further sequential operational and financial improvements:
The new wells perform well and encourage further development of our leases in the Texas Panhandle. Our 24 well drilling program will extend into next year, as we are entering the winter season which is more challenging and reduces the pace of drilling. Upon completion of the current program, we plan to launch an expanded drilling program in 2019. With the addition of new well completions in Q4, our production targets remain within reach and we expect further production growth in 2019.
Financial results were driven by the increase in production, higher price realisations and improved cost efficiency. Oil and gas prices continued to increase in the third quarter. The effects of costly hedging contracts experienced in the first half of 2018 levelled off in the quarter and production costs per boe decreased.
Looking ahead, we expect further financial improvements and increasing cash flow driven by higher production levels and supportive oil and gas markets. So far in the fourth quarter, oil markets have been volatile with lower prices while gas prices have increased significantly. Increased cash flow from operations supports further investments in the coming year and improves our position to reduce financing costs by capitalising on better debt financing options.
The outlook is promising as we continue our efforts to transform Matra Petroleum through successful drilling, production growth, operational performance and reduced debt costs, with the objective to continue to add value to our oil and gas reserves and improve bottom line performance.
23 November 2018
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
Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550
Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 103 90 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: email@example.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 23 November 2018.
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 25.0 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).