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  4. SOCO: trading and operations highlights

SOCO: trading and operations highlights

Published by , Editorial Assistant
Oilfield Technology,


Trading and operations highlight SOCO, an international oil and gas exploration and production company, announces a trading and operations update to summarise the company’s current financial and operational status and to provide guidance in respect of the financial year ended 31 December 2015, the results for which are scheduled for release on 17 March 2016, and guidance for 2016. The information contained herein has not been audited and is subject to further review.

Ed Story, Chief Executive, commented:

“With low cost production, no debt and our disciplined approach to capital allocation, SOCO is in a good position to weather a prolonged industry downturn. We will be frugal, spending only on commitments and work that is directly related to production whilst keeping an eye out for opportunities. Our outlook continues to be positive and we remain confident that we will continue to deliver on strategy through an extended low oil price environment.”

Highlights

  • Year-end cash balance of US$104 million with no debt, after payment of dividends to shareholders of US$51million in June 2015 and capex for the year of US$82 million.
  • Net production averaged c.12, 000 boe/d at the top end of their previously upgraded guidance of 11.8-12.0 000 boe/d.
  • The average realised crude oil price for 2015 was c.$54 per barrel, a premium of US$2 per barrel to Brent, giving rise to c.$215m in revenue.
  • Cash operating costs were under US$10/bbl.
  • The updated TGT Reserve Assessment Report (RAR) is approved for presentation to the relevant authorities. Formal approval is expected in the coming weeks.
  • The Mer Profonde Sud (MPS) commitment well is expected to spud in February 2016 once the rig is released from its current programme.
  • 12 month extension granted on the Marine XI licence.
  • The production threshold (>27.8 million bbls) to trigger the Subsequent Payment Amount (c.$52.7 million) associated with the 2005 disposal of the Mongolian assets has been achieved.

    • Adapted from a press release by Louise Mulhall

    Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26012016/soco-trading-and-operations-highlights/

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