Maurel et Prom has reported production slipping 5% in the first nine months of the year, even while revenues increased 42%.
The company has benefited from substantially higher oil prices. In the third quarter, oil sales was $73.5 per barrel, or $66.7 per barrel over the first three quarters of 2021. In 2020, this sales price averaged $37.8 per barrel over the nine months, reaching a low of $23 in the second quarter.
Maurel reported consolidated sales of $113 million in the third quarter, bringing the year thus far to $301mn. This is up 42% on the $212mn reported in 2020.
Gabon is the major driver of Maurel, accounting for $85mn of sales in the recent quarter, while Angola increased reached $17mn.
However, production in Gabon in the year thus far is down 13%, averaging 15,160 bpd, from 17,500 bpd. Angola is down 10%, at 3,607 bpd.
The company also has an interest in the Mnazi Bay gas field, in Tanzania. Pricing was little changed on this, but volumes rose 26% over the nine months.
Maurel CEO Olivier de Langavant said the company had cut costsin 2020. As a result, it is ready to “take full advantage of the current favourable prices. We intend to capitalise on this conducive environment to refinance the Group’s debt, which is something we are currently working on.”
The company’s net debt is $397mn, down from $455mn at the beginning of 2021. It expects debt to continue falling this year, driven by two liftings in the fourth quarter, from Angola and Gabon.
At the same time, Maurel expects to refinance its term loan by the end of this year. Its current term ends in December 2023.
The company is also holding talks with Gabon on $43mn currently held in an escrow account. This is linked to Gabon Oil Co.’s (GOC) carrying costs before 2018. Maurel said it was also working on various other matters with the government of Gabon.
Maurel was holding similar talks on the escrowed cash with Gabon when it posted its third quarter results in 2020.
The Ezanga permit provides Maurel’s Gabonese production. Work slowed as a result of OPEC quotas but resumed in July, with development drilling and a stimulation campaign.