Rio de Janeiro, Brazil/Hamilton, Bermuda, 27 February 2023: Seacrest Petroleo Bermuda Limited ("Seacrest Petroleo" or the "Company") today reported fourth quarter and full year unaudited 2023 results. The report and results presentation are attached hereto and can be found on the Company website www.seacrestpetroleo.com.
“Seacrest Petroleo is heading into 2024 with a strengthened financial position to execute on our growth strategy. Valuable learning has been harvested from the initial phase of our drilling programme and our team has shown remarkable flexibility and skills managing the weather-induced offtake force majeure incurred in the fourth quarter. We exited 2023 with an oil production 82% higher than a year ago, demonstrating our reserve base, expanding portfolio of producing wells and the revitalisation efforts driving up well productivity and reliability. We continue our safe and responsible operations, having recorded no serious incidents in our operations for two years in a row. The Company is now fully focused on executing on our 300 infill well drilling programme – the largest onshore Brazil – and remains well positioned to deliver on our long-term production growth strategy.” – says, Scott Aitken, President of the Executive Committee, Seacrest Petroleo.
Solid financial results
- Revenues of USD 64.7 million, a 28% increase from the third quarter
- EBITDA of USD 12.0 million, rising for the third quarter in a row
- CFFO USD 21.8 million, a USD 18.5 million sequential improvement
- Average realised oil price USD 84.7/bbl, up 7.1% sequentially
- Cash position USD 50.5 million
Operational performance
- Total production 8 221 boepd in the quarter, down 11% sequentially due to the previously announced weather-related offtake problems that curtailed production in November
- Oil production 7 646 bopd for the year, above prior guidance on faster-than-expected recovery at the end of the year
- Production cost per boe USD 23.8 for the year and in line with guidance, though up for the quarter despite the offtake force majeure
- Drilled the first batch of three infill wells with two set for imminent production start
- Stable well reliability despite resources shifted to manage offtake situation in the quarter
- No serious incidents incurred in the fourth quarter and in 2023
Committed to execute on growth strategy
- USD 106 million of funding secured in recent months to execute on growth plans in 2024
- Expect to drill 40-50 new wells in 2024 with 3 mid size and heavy rigs secured, with a 4th in negotiation and main impact expected to be seen in the second half of the year
- Fast payback on capex with substantial cash flow potential supporting future dividends
2024 guidance:
- Oil production 8 500 – 11 000 bopd with exit rate from 11 000 to 15 000 bopd
- Total production, including gas, 9 500 – 12 500 boepd with exit rate from 12 000 to 17 000 boepd
- Production cost per boe USD 20 – 24
- Capex USD 70 – 100 million
Webcast and Q&A session
Today, at 7:00 CET, a presentation of the financial results and operational developments will be held by the President of the Executive Committee, Scott Aitken, and Group CFO, Torgeir Dagsleth. The presentation will be conducted as a webcast. To access the presentation, please use the following link:
https://channel.royalcast.com/landingpage/hegnarmedia/20240226_3/
Further, today at 12:00 CET, the Company will host a live Q&A session, moderated by ABG Sundal Collier. We recommend connecting 10 minutes prior to the start of the call. Information on how to ask questions will be given at the start of the session. There will be a limit of two questions per participant. To access the Q&A session please use the following link:
For further information, please contact
Torgeir Dagsleth, Group CFO
Seacrest Petroleo Bermuda Limited
Tel. +47 958 91 970
E-mail: torgeir.dagsleth@seacrest.com
John de los Santos, Head of Investor Relations
Seacrest Petroleo Bermuda Limited
Tel. +44 79 4971 4756
E-mail: john.santos@seacrestpetroleo.com
The information in this press release and the accompanying report and presentation is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act and the Euronext Rule Book part II.
About Seacrest Petroleo
Seacrest Petroleo is an independent oil and gas production company with an integrated portfolio of onshore producing oil fields and export infrastructure onshore in Espírito Santo, Brazil. The fields have estimated oil and gas in place volumes of 1.2 billion barrels of oil equivalents and certified 2P reserves of 140 million barrels of oil equivalents. The Company has exclusive control over its infrastructure, continuously from field production to offshore tanker loading terminal, allowing for cost-effective operations, and enabling direct access to markets for its premium grade products. The Company has offices in Bermuda, Norway and Brazil.
Notice to reader
Seacrest Petroleo’s results presented in this press release and the accompanying report and presentation are, unless otherwise stated, based on IFRS and have not been externally reviewed and audited. The financial information presented herein and in the accompanying report and presentation is based on internal management accounts, is the responsibility of management and has not been externally audited, reviewed or verified. Although we believe the information to be reasonable, actual results may vary from the information contained above and in the accompanying report and presentation and such variations could be material. As such, you should not place undue reliance on this information. This information may not be indicative of the actual results for the quarter or any future period.
Important information
Matters discussed in this press release and the accompanying report and presentation may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believes", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release and the accompanying report and presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release and the accompanying report and presentation by such forward-looking statements. The information, opinions and forward-looking statements contained in this release and the accompanying report and presentation speak only as at the date of this release and are subject to change without notice.