Drilling & production

Geolog has been present in the US market since 2014.

The predicted spending reductions translate to a US$24.4 billion cut in 2020 compared to last year.

Currently, all office employees of the company are now working remotely, with 70% in their third week.

The revised 2020 capital budget of US$1.3 billion or less includes the implementation of 2Q20 frac holidays in the Bakken and Eagle Ford.

The company will be reducing its average rig count from 9 to approximately 3 in the Bakken and 10.5 to approximately 4 in Oklahoma.

Of the 100 listed energy service companies analysed by Rystad Energy across the various service segments for this research, more than two-thirds are unlikely to be able to meet their interest payment obligations on time this year.

The contract has been extended until at least March 2022.

The largest share of the company's capital spending reduction will be in the Permian Basin.

The company has said however that Premier Oil has withdrawn from the project, as the well did not meet its pre-drill expectations.

Under the agreement with Falcon Oil and Gas, Origin will increase its interest n the Beetaloo Basin JV to 77.5%.

Group production for the year to 31 December 2019 was in line with guidance at 13 886 boe/d on a working interest basis (19 356 on a pro forma basis).

The company's contract with Dubai Petroleum will end in October 2020 rather than January 2022.

The company is targeting CAPEX of c.US$300 million in 2020 (down from c.US$350 million) and decommissioning expenditure of c.US$65 million (down from c.US$100 million).

The company has made an additional reduction in the 2020 capital plan down to the new midpoint of US$780 million from the previously announced US$950 million in March 2020.

Oil production will be cut by 200 000 bpd, a volume that includes the reduction of 100 000 bpd announced on 26 March 2020.