Highlights and outlook
Production for Q2 was 134 200 boe (Q1 2015: 106 000 boe) corresponding to an average of 1475 boe/d net (Q1 2015: 1178 net) which results in an average of 1327 boe/d net for the first six months.
EBITDAX for Q2 was positive with DKK 7.7MM and contributed to reduce the total negative EBITDAX down to negative DKK 20.5MM for the first half of the year.
Gross profit also went from negative in Q1 2015 to positive in Q2 2015. Gross profit in 2Q 2015 was DKK 9.7MM (DKK -14.1MM in Q1 2015).
Revenue for Q2 2015 was DKK 76.5MM (Q1 DKK: 39.1MM) and this was impacted by the lower than expected production and lower oil price. Net loss for Q2 2015 was DKK 15.4MM and the net loss for 1H 2015 was DKK 27.1MM.
Cash and cash equivalents at end of Q2 2015 was DKK 15.2MM. Cash and cash equivalents 25th August was DKK 62MM.
Net assets/shareholders equity is DKK 450.4MM.
G&A costs have been reduced significantly and are DKK 9.1MM in Q2 2015 (DKK 12.1 in 1Q 2015).
The Pegasus West transaction with Third Energy Offshore Limited completed 31st July and will be accounted for in Q3 2015 which will result in an extraordinary income of GBP 5.6MM (DKK 57.8MM) in Q3 2015.
On the 3rd August Atlantic Petroleum announced that its Board of Directors has authorised the Company's management team to explore a broad range of strategic alternatives to further enhance shareholder value. Pareto Securities AS has been engaged as the Company's financial advisors in this process.
As part of the strategic review. Atlantic Petroleum will consider a full range of options in order to unlock the value underlying the Company's assets, including:
A sale or merger of the Company.
A sale, joint venture or partnership in respect of the Company's activities in the United Kingdom and/or Norway
Continuing to execute on the Company's strategy as an independent company.
The process is currently ongoing, and Atlantic Petroleum does not expect to update the market with any further information on the process unless and until its Board of Directors has approved a specific transaction or otherwise deems disclosure appropriate or necessary.
Ben Arabo, CEO commented:
“We have delivered a positive gross profit and EBITDAX in spite of a very challenging market environment. We have reduced our G&A significantly and will continue to focus on capital discipline. With the completion of the Pegasus deal 31st July we have demonstrated to shareholders that assets can be highly valued even in adverse market conditions. The review of strategic alternatives initiated will allow us to explore other options that can accelerate the realisation of value for the benefit of our shareholders.”
Adapted from a press release by Louise Mulhall