Aabar's 2007 Revenues Climb 166% on Higher Production and Oil Prices
Aabar Energy releases preliminary results stating that net revenues for the 12 months to Dec. 31, 2007 totaled U.S. $435 million , an increase of 166% from U.S. $164 million for the full year 2006 due to rising oil production from the group’s continuing operations in Southeast Asia and higher oil prices.
Operating profit rose 196% to U.S. $158 from U.S. $53 million a year ago. Aabar reports a net profit to shareholders of AED 289 million for the 2007 period, with basic and diluted earnings per share of 32 fils. The preliminary results remain subject to audit.
All full-year figures have been restated to categorize drilling services division Dalma Energy LLC as a discontinued operation following Aabar’s announcement on July 29 regarding the sale of the wholly owned subsidiary. The divestment was approved by shareholders in September 2007 and has since been completed.
"The growth in the group’s production this year has been particularly satisfying at a time when oil prices have been increasing," said David Woodward, Aabar’s CEO. "On the downside, costs associated with materials, equipment and services have increased significantly and we are focusing our efforts on controlling expenditure as we continue the development of the Jasmine field and a undertake an extensive exploration program in 2008."
Net oil production through Aabar’s Pearl Energy subsidiaries averaged 18,898 bopd in the fourth quarter and 18,910 bopd over the full year from three fields in Indonesia and one producing concession in Thailand. Aabar’s average realized oil price in the quarter rose to U.S. $72.86 per barrel compared with U.S. $61.07 in the third quarter 2007 and US$56.56 in the October to December period 2006.
Two additional production platforms, Jasmine B and C, in Block B 5/27 in the Gulf of Thailand were brought into operation in the first six months of 2007 and accounted for the rise in total group production. Construction of two further production platforms was nearing completion at the end of the year, ready for sail out and installation in and around the Jasmine production area in the first half of 2008.
The team in Bangkok has substantially increased its exploration acreage in Thailand and now holds working interest and operatorship in 10 Thai concessions. Seismic acquisition programs were completed on four new concessions in the latter half of 2007 and plans are underway for a significant exploration drilling program across the exploration portfolio this year.
In Indonesia, Aabar submitted a plan of development (POD) for the Ruby gas field, which is located in the Sebuku production sharing contract (PSC) offshore East Kalimantan. The POD followed a successful appraisal drilling program in early 2007 and forecasts a plateau production rate of 100 million standard cubic feet per day for four years followed by a five year tail period, with a total production volume over the nine years of 240 billion standard cubic feet.
Successful exploration drilling in the Tungkal PSC onshore Sumatra in April 2007 led to the Mengoepeh South discovery, which was put on stream in September and has slowed the ongoing decline in production from the main Mengoepeh field resulting from reservoir pressure depletion and limited aquifer influx.