PTTEP Reports 32% Increase in Net Profit for Q1

PTT Exploration and Production Public Company Limited (PTTEP) made a profit of more than 8,900 million baht in the first quarter of this year. The company's Arthit Project has reached its daily production target of natural gas while G4/43 project started production of crude oil in this quarter. M9 Project in the Gulf of Martaban is progressing well and the company expects to sign the Heads of Agreement (HOA) in the near future.

Mr. Anon Sirisaengtaksin, Chief Executive Officer of PTTEP revealed that the company and its subsidiaries' net profit for the first quarter of 2008 was baht 8,905 million, an increase of baht 2,134 million or 32% from 6,771 baht posted during the same period of last year.

In this quarter, PTTEP and its subsidiaries had total revenue of baht 28,374 million, an increase of baht 7,104 million or 33% from baht 21,270 million registered during the same period of last year. This was mostly due to the higher average product price which was at US$ 48.24 per barrel of oil equivalent (BOE) compared with US$ 35.43 per barrel of oil equivalent (BOE) during the same period of 2007. The currency exchange rate was baht 32.82 a dollar compared with baht 36.15 a dollar during the same quarter of last year.

Another factor was the increase in sales volume to 182,431 barrels of oil equivalent per day (BOED) compared with 171,170 BOED in the same quarter of last year. The increase was mostly made up by the increased sales of natural gas and condensate from Bongkot and Oman 44 projects as well as Arthit Project which has started natural gas delivery to PTT since late March. At present, the project can deliver gas at 330 million standard cubic feet per day (MMSCFD).

As of March 31, 2008, PTTEP and its subsidiaries had total assets of baht 201,607 million, up baht 11,568 million from the end of 2007.

Arthit Project, where PTTEP is the operator with 80% interest, has started its natural gas production since late March. Today, the project delivers natural gas and condensate to PTT at the contractual rate of 330 MMSCFD and 16,000 - 20,000 barrel per day respectively. This represents 18% of the company's production out put target of 223,334 barrel of oil equivalent per day (BOED). Arthit's production out put will serve 10% of domestic demand for at least 20 years. The company has also boosted Arthit North development by completing the installation of the 1st wellhead platform in March. Arthit North is expected to start-up its production by August this year.

G4/43 Project, another project which PTTEP holds 21.375% of interest, has started its crude oil production since January. Its production rate has been increasing gradually to 5,900 barrel per day since March.

PTTEP has completed its drilling of additional exploration and evaluation wells at M9 Block in the Gulf of Martaban in the Union of Myanmar. The drilling campaign was done at the beginning of 2008 and natural gas was found in 4 exploration wells. The company expects to sign Heads of Agreement (HOA) for M9 Block with Myanmar government in the near future. The agreement will cover the project development plan and gas sales. The Gas Sales Agreement is expected to be signed within this year. PTTEP plans to start production at M9 with the initial rate of 300 MMSCFD of natural gas in 2011 or 2012. Most of the natural gas will be exported to Thailand. The company will start development of M3 and M7 Projects by drilling two exploration wells in the third quarter of this year.

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