Revus Energy ASA generated total revenues of NOK 83.4 million (USD 15.4 million) in the fourth quarter of 2007. Significant expansion into the UK Continental Shelf was achieved via the agreed acquisition of Palace UK ltd.
The fourth quarter gave an operating loss of NOK 202.8 million, compared with an operating loss of NOK 49.4 million in the fourth quarter 2006. This was largely because of a significant increase in exploration expenses due to the continuation of the very active exploration programme. Including financial items, the fourth quarter 2007 gave a net loss before tax of NOK 207.8 million. After tax the loss reduces to NOK 49.4 million for the fourth quarter 2007, compared to a loss of NOK 13.9 million in fourth quarter of 2006. The net loss of NOK 5.0 million in net financial items is caused mainly by unrealised foreign exchange losses.
The production expenses in the quarter were NOK 48.6 million and the exploration costs were NOK 198.6 million. Exploration costs were mainly related to expensed drilling costs on PL 341 (Thorkildsen well) and PL 337 (Storskrymten / Grytkollen well), seismic acquisition costs and technical work performed on the company's many exploration licenses. Drilling costs associated with the successful Luno exploration well have been capitalised.
At the end of the fourth quarter the Financial Statements reflect an overlift position of 3,810 bbls at the end of the quarter, versus a small underlift position of 59 bbls at the end of the third quarter. Oil and gas production was 171,317 boe in the fourth quarter 2007. In total, Revus sold 161,618 bbls of oil plus 19,999 bbls oil equivalents of gas during the fourth quarter. Revus realised an average oil price of USD 89.39 per barrel in the quarter, and USD 73.11 per barrel for the year 2007 as a whole. Around 95 per cent of the production is Brent quality oil.
Cash flow from operations for the fourth quarter 2007 was positive at NOK 115.5 million, compared with a negative cash flow from operations of NOK 21.1 million in the fourth quarter 2006.
The company will continue its active drilling activities on the NCS in 2008 with 9 wells currently planned, including some very exciting and high potential exploration wells as well as the appraisal well on the Luno discovery.
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