PTTEP Announces 3rd Quarter Operating Results
Mr. Maroot Mrigadat, President of PTT Exploration and Production Public Company Limited (PTTEP) reported on the operating result for the 3rd Quarter of 2006, important events that arose during this period and future development plans as follows:
PTTEP 3rd Quarter Results
PTT Exploration and Production Public Company Limited or PTTEP for short had revenue of 23,896 million baht in the third quarter of 2006, an increase of 3,910 baht or 20% from the same period of last year.
Mr. Maroot Mrigadat, President of PTTEP, attributed the increase to this year's average sales price which rose to US $38.25 per barrel of oil equivalent (BOE) from last year's price of US $31.47 per BOE, coupled with an increase in sales volume to 168,830 barrels of oil equivalent per day (BOED), up from 160,678 BOED in the same quarter of last year. The increased sale mainly came from the crude oil sales from B8/32 & 9A project, natural gas sales from Bongkot and Yadana Projects and condensate sales from Pailin Project.
In the third quarter of 2006, PTTEP and its subsidiaries had a net profit of 6,813 million baht or 2.08 baht per share, down 370 million baht or 5% from a profit of 7,183 million baht last year. The return on shareholders' equity was 33.29%.
PTTEP and its subsidiaries incurred expenses of 11,358 million baht, an increase of 3,887 million baht or 52% from the same period of last year. This was due to higher exploration expenses including the write-off of dry wells in Myanmar M7 & M9, Vietnam 16-1, L22/43 and G4/43 Projects, and the seismic cost from the Vietnam 16-1, Vietnam B&48/95, Algeria 433a & 416b and Indonesia Merangin-1 Projects.
PTTEP found more natural gas at Bongkot Project
In October 2006, PTTEP completed drilling Ton Chan-1X exploration well, the first exploration well drilled at Bongkot Project in 8 years, and encountered gas bearing sands with a total thickness of 143 meters in the stratigraphic trap. This will help increase the production and prolong the life of the Project. PTTEP plans to drill one more exploration well at Bongkot.
Bongkot Project now produces 600 million standard cubic feet of natural gas per day and 19,259 barrels of condensate per day. PTTEP is the operator and has 44.4445% equity in this project.
PTTEP is moving towards the new frontiers
PTTEP is now in the process of commissioning for the production of natural gas at Shams Field in Oman 44 Project. Production of 40 million standard cubic feet per day (MMSCFD) and 3,400 barrels per day of condensate is expected to start in November 2006, marking the first time that PTTEP sells natural gas to a Middle East country. Also set to start in November is Phu Horm Project in the northeastern part of Thailand where PTTEP has 20% share. Natural gas will start flowing to PTT, the buyer, at the rate of 79 MMSCFD.
PTTEP still has high hope for M9 block in the Gulf of Mataban in Myanmar where oil has been found. PTTEP believes that the block has high potential and will continue to explore for petroleum there. There will be more exploration wells in Zatila structure to find large sized oil structure and more exploration wells at Zawtika structure where natural gas has been found. Exploration will be done in order to determine the true potential of the project and to find the method to develop it.
PTTEP is also looking for new petroleum sources to increase its reserve and to expand its investment. Last September, the company signed a memorandum of understanding with Petrobangla, the national oil company of Bangladesh, to open ways for joint investment in petroleum exploration and production in Bangladesh, Thailand, and other countries, with the initial focus on the Gulf of Bengal. The company is also looking for opportunities in South America and Australasia.
PTTEP is one of NIne companies with best corporate governance
On October 27, 2006, the Stock Exchange of Thailand announced that PTTEP is one of the nine companies with the best corporate governance, scoring in the range of 90-100 marks. Of the registered 402 companies, only nine achieved this status.
The criteria used in this competition were those of good corporate governance of the Organization for Economic Cooperation and Development and of the Stock Exchange of Thailand, and encompassing five categories, namely, rights of share holders, equitable treatment of share holders, role of stake holders, disclosure and transparency, and board responsibilities.
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