Wednesday 17 July 2019

OKEA ASA reported strong operational income and cash flow in the second quarter. Operational performance was solid with a net production of above 20 000 boepd and EBITDA of NOK 594 million, up from NOK -13 million in Q2 2018.

Total operating income in the quarter was NOK 1 039 million, a massive increase from NOK 28 million in Q2 2018 caused by the acquisition of working interests in the Draugen and Gjøa fields from A/S Norske Shell in 2018. Compared with Q1 2019, the increase was 39%, and this increase is mainly caused by two liftings on Draugen in Q2 compared to one lifting last quarter, partly offset by impaired market prices for natural gas and reduced volumes of oil and gas lifted on Gjøa. Profit from operating activities in the quarter was NOK 367 million, up from NOK (19) million in Q2 2018.

OKEA produced 20 045 boepd in Q2 2019, up from 358 boepd in Q2 2018. The average realized liquid price was USD 60.7 per barrel, while gas revenues were recognized at market value of USD 0.15 per standard cubic meter.

The CEO of OKEA, Erik Haugane comments: "I’m pleased with the strong development of OKEA in 2019. Operational performance is good and our operatorship at Draugen is executed in a safe and effective manner. Our financial position is good, with high cash flow from operating activities and with the proceeds from the initial public offering at Oslo Børs in June.”

He continues: “OKEA’s ambition is to significantly lift near-term production. In Q4, we will drill an infill pilot well at Draugen and an exploration well in the “Skumnisse” prospect north-east of Draugen. The field development at Yme is progressing as planned and remains on track towards first oil in H1 2020 and the P1 development plan on Gjøa has been approved and production start is expected late 2020."