Pacific Rubiales has released its unaudited consolidated financial results for the three month and nine month periods ended September 30, 2009, together with its Management's Discussion and Analysis for the corresponding periods.
Ronald Pantin, the Chief Executive Officer of the company, commented, "We are very pleased with our third quarter results which continue to show strong production growth, more than compensating for the significant weakness in the current oil price when compared with the same period last year. Our 63% increase in production from the same period last year is an achievement that demonstrates our leadership and growth potential among the Colombian E&Ps. We remain focused on executing on our capital expansion plan."
The results for the third quarter of 2009, and by implication those of the first nine months of 2009, reflect the continuous ramp-up of production in the company's operations.
During the third quarter, the company's operated production (volume produced) reached an average of 81,753 boe/d gross (33,398 boed/d net), an increase of 31,574 boe/d gross (12,133 boe/d net) or 63% over the same period last year. This growth in operated production derives primarily from the increase in production at the Rubiales heavy crude oil field. As at November 2nd, the production at Rubiales had reached 90,000 bbl/d (gross), making this the fastest growing and highest producing field in Colombia. Production costs per barrel continue to decrease, showing a 55% reduction over the same period last year. This is evidence of management's commitment to control costs while increasing production.
The company continued its marketing strategy of exporting our oil production to its most attractive international markets (US, Canada, Caribbean), while maintaining a presence in the local market with direct sales to the bunker and industrial sectors. During the third quarter the company exported 1,606,858 bbl to US refineries and sold 617,000 bbl in the Colombian domestic market.
As a result of the significant increase in production, and in spite of the relative lower prices for oil and gas during the third quarter of 2009, compared with the same period last year (WTI US$67.88/bbl versus US$118.05/bbl), the company was able to maintain revenues as compared to the prior period (US$156.6 million in 2009, US$202.4 million in 2008). These revenues and the operational successes that enabled the company to achieve them were modulated by a number of financial charges arising from financial and non-cash items that will level off during the course of the year. These non-cash financial charges reflect mainly foreign exchange risks associated with future income tax liabilities, which may or may not materialize, offset with the effect of overlift volumes that the company marketed during the second quarter which were settled during the third quarter.
The company continues to move forward on its aggressive capital expansion plan, with a focus on the Rubiales field and the Quifa block.
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