RusPetro to Boost Production with New Heat Exchanger
RusPetro reported Friday that a heat exchange system is expected to come on line on the firm's Krasnoleninsky Arch field, which is located in the Khanty-Mansiysk region of West Siberia.
RusPetro said that the heat exchanger will enable condensate production to increase from a current level of 1,400 barrels of oil per day (bopd) towards 4,000 bopd, bringing total crude and condensate production from around 6,500 bopd to approximately 9,000 bopd.
The firm has updated its development plan and aims to produce average crude and condensate at a rate of 10,000 bopd in 2013, with a targeted exit rate of 13,000 bopd for the year. For the end of 2014 and 2015, it plans exit rates of 20,000 bopd and 31,000 bopd respectively.
RusPetro also announced that it has strengthened its balance sheet. The firm has commenced an offering of senior secured notes, which will be used to repay a senior term loan and for general corporate purposes. It is also proposing to convert Limolines Transport's outstanding shareholder loan into new shares in the company. Most significant, however, has been the establishment of a new revolving credit facility at an initial level of $50 million with Sberbank.
RusPetro Chief Executive Don Wolcott commented in a company statement:
"We are delighted to announce our plans for strengthening of our balance sheet through a range of actions today, including the notes offering, Limolines loan conversion and the new Sberbank facility. These will simplify our capital structure and raise new funds that can be deployed in to the field. Our business is now operating cash flow positive and we believe that our strategic development plan will put the business on a firm trajectory for growth in 2013 and beyond."
Analysts who follow the company at London-based FoxDavies Capital saw the update as positive.
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