Hague and London Oil announces publication of 2018 annual report – provides update on UK and Netherlands operations

Hague and London Oil, the oil and gas company with a diverse portfolio of production, development, appraisal and exploration assets primarily focused in the Southern North Sea, has announced the publication of its 2018 annual report.

 

Financial

  • HALO net average production of 2,391boepd, with forecast production of 2,500-2,600boepd in 2019
  • Net sales in 2018 of 5.1Bcf and recorded revenues of £31.1m (2017: £4.3m)
  • Cashflow from operations of £12.3m (2017: £2.2m) with operating profit (before interest and taxes) of £6.5m (2017: £0.2m)
  • 2018 capital expenditures of £4.9m
  • Year-end cash position of £11.3m
  • Proven plus probable (‘2P’) reserves of 17.2mmboe between Holland and the UK

 

Netherlands

  • L13-FI development brought on stream €45m under initial agreed budget in August 2018
  • L13-FI produced around 4.7Bcf since start-up with base case recoverable reserves of 48.4-59.6 Bcf
  • Gross direct opex for the JDA has been brought down from €179m in 2016 toward a budget target of €104m in 2019
  • E18-A field reached its economic limit, and permanently ceased production on 24th September 2018
  • During 2018, operators NAM and Neptune successfully negotiated a lifetime extension project for the JDA satellite fields K12-B and K12-B9
  • E15c partnership is currently considering drilling in the Maple prospect in 2020, based on the data made available, and interpreted, in 2018 to the Partners.
  • Group has progressed its F5 & F4 applications, and subsequent F12 application, with results  anticipated in 2019.
  • TTF price average of €21.90/Mwh in 2018 versus €17.09/Mwh in 2017

 

UK

  • Company announced acquisition of Third Energy Offshore Limited (“TEOL”) in September 2018 in the UK which successfully closed on 28 December 2018
  • TEOL transaction was achieved by HALO issuing 5.75mm shares to Third Energy Holdings Ltd
  • TEOL’s primary asset is a 45% working interest in the Greater Pegasus Area; this includes a number of natural gas discoveries including the proposed Pegasus West Development; operated by Spirit Energy (55%).
  • Initial field development plan (FDP) for Pegasus West was submitted to the UK’s Oil and Gas Authority (OGA) in 2018 by Spirit and TEOL; subsequently re-submitted in HALO’s name later in January 2019
  • OGA currently reviewing the FDP and communicating with the partners with the intention of making a final investment decision (FID) in 2019

 

Outlook

  • HALO also remains committed to organic growth through new licence applications, new ventures and continued exploitation of the existing portfolio
  • Emphasis for 2019 will be on addressing the capital requirements associated with the planned FDP of Pegasus West and continuing to realise value throughout the portfolio
  • Once the FDP progresses toward FID capital requirements can be fully assessed and addressed and, to the extent equity is needed, the company will commence the process of an initial public offering (IPO) of its shares

 

Source: Energy-pedia