PEARL Energy Posts Record 3Q05 Net Profit as Crude Sales Jump
PEARL Energy Limited reports a strong financial performance for the third quarter of 2005 with net profits rising to a record US$7.47 million, bolstered by crude sales from the Jasmine oil field in the Gulf of Thailand and higher oil prices.
Production from the Jasmine field in the Block B 5/27 contract area ran at an average 10,700 barrels of oil per day (bopd) at the end of September, boosting total production net to the Group from its Thai and Indonesian operations to 13,100 bopd.
Crude production volumes net to the Company averaged 12,800 bopd in Q3 05, almost double the 6,500 bopd recorded in the second quarter of 2005 (Q2 05).
Net crude sales between July and September increased fourfold to 1,226,073 barrels compared with 300,971 for the same period a year-ago, and more than triple sales of 365,925 in Q2 05. The Group realised an average oil price of US$51.50 a barrel in Q3 05, 31% higher than the US$39.30 achieved in the third quarter 2004. For the first nine months of the year, the Group's average oil price was US$50.80 a barrel, an increase of 61% from US$31.60 in the same 2004 period.
The surge in sales and higher oil prices lifted net revenues in Q3 05 to US$63.12 million compared with US$11.83 million for the third quarter 2004, with Jasmine crude sales accounting for 69% of the total figure. In August, PEARL gave the go-ahead for the construction and installation of two additional production platforms in the Jasmine Production Area, which are slated to be in full production by the second quarter of 2007.
"The operational and financial achievements so far this year have laid the foundation for a substantial growth program in 2006 and beyond. We are accelerating development projects such as Jasmine B and C production platforms, expanding our exploration program and actively seeking new assets across Southeast Asia," said Richard Lorentz, Chief Business Development Officer.
"For 2006, PEARL expects to drill 25 exploration wells and 27 development wells and conduct at least two seismic acquisition programs across our current asset portfolio. The exploration program will bring our expenditure net to PEARL to US$36.6 million after contribution from farm-out partners," said Mr Lorentz.
PEARL closed a US$75 million senior reducing revolving facility with Natexis Banques Populaires in September to refinance existing borrowings and to finance development of assets as well as the acquisition of new oil and gas assets. The company is actively seeking to expand its asset portfolio and has applications pending with the host governments in Thailand, Indonesia, Vietnam and Cambodia.
"These results are close to or surpass our full-year prospectus forecast in only nine months and pave
the way for further growth by year end and into 2006," said Keith Cameron, PEARL's Chief Executive