Erin Energy announces Q3 2017 operational and financial results

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Erin Energy Corporation (Erin Energy or the Company) (NYSE American:ERN) (JSE:ERN) announced today financial and operational results for the quarter ended September 30, 2017.

THIRD QUARTER HIGHLIGHTS:

  • Crude sales volumes of more than 600,000 net barrels of oil;
  • $33.6 million in revenue;
  • Average daily production of 5,000 net barrels of oil.

“During the third quarter, we produced more than 400,000 net barrels of oil and generated revenues of more than $33 million,” saidFemi Ayoade, Chief Executive Officer.

“We completed the drilling phase of Oyo-9, have secured a funding commitment for Miocene exploration in OML 120 and will spud the Miocene exploration well before year-end. We also made further progress in our AP and debt reduction efforts.”

OPERATIONAL UPDATE

Production volumes for the quarter were approximately 5,000 net barrels of oil compared to approximately 6,100 net barrels in the comparative period 2016. The Company’s crude oil inventory was approximately $1.3 million at September 30, 2017.

The Company exercised the first option in its current drilling contract to drill the Oyo North West (ONW) prospect. The ONW is one of Erin Energy’s drill-ready Miocene exploration prospects. Erin Energy has four drill-ready prospects, which target P50 Prospective Resources of 2.4 billion barrels of oil.

In The Gambia, the Company and its partner, FAR Ltd., an Australian Securities Exchange listed oil and gas company are currently interpreting the recently acquired 3-D seismic data to further mature identified prospects on blocks A2 and A5.

In Ghana, following the recent decision of the Special Chamber of the International Tribunal of the Law of the Sea (ITLOS) in Hamburgconcerning the maritime boundary dispute between Ghana and Côte d’Ivoire, the Company is working with the Ghanian Government and its partners to progress the development activities in its Expanded Shallow Water Tano block, offshore Ghana. The 3-D seismic data, which is planned to be acquired during the second quarter of 2018, will be used to improve subsurface definition and optimization of drilling targets.

FINANCIAL SUMMARY

Third-quarter 2017 revenues were $33.6 million compared to $28.6 million in the third-quarter 2016.

The Company lifted and sold approximately 600,000 net barrels of oil at an average price of $56.09 per barrel, compared to approximately 583,000 net barrels of oil at an average price of $49.07 per barrel during the comparative period 2016.

In the third-quarter 2017, the Company reported a net loss of $14.1 million, or a loss of $0.07 per basic and diluted share, compared to a net loss of $23.5 million, or a loss of $0.11 per basic and diluted share for the comparative period 2016.

As of September 30, 2017, cash, cash equivalents and restricted cash were approximately $31.9 million.

 

For more please see: Press Release