Exploration & Production | Quarterly / Earnings Reports | Third Quarter (3Q) Update | Capital Markets | Capital Expenditure

ArPetrol Announces Third Quarter Results

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ArPetrol Ltd. has announced its financial and operating results for the three and nine months ended September 30, 2014 and provides an operational update on activities to date this year as well as an outlook for the remainder of 2014 and 2015.

Summary for the Third Quarter 2014

Operating and Financial

• ArPetrol's working capital position is $1.8 million at the end of the third quarter of 2014, with an increase of $0.4 million from the second quarter of the year. This is a significant improvement compared to a deficit of $0.8 million at the end of 2013.
• The Company had drawn $1.0 million on its short-term loan at the end of the third quarter 2014. Subsequent to the quarter end the Company made a $500,000 loan repayment reducing the balance of the short-term loan to $0.5 million. The remaining amount will be repaid by the end of 2014.
• During the third quarter of 2014 the Company processed 76 million cubic feet (Mmcf) of third-party gas generating $2.2 million of revenue and $1.1 million of operating netback from processing. Processing revenue has been consistent at around $2 million per quarter since the third quarter of 2013 when the Company signed its new gas processing contract.
• ArPetrol's third quarter production averaged 244 barrels of oil equivalent per day (boe/d). This is an increase of 26 boe/d from the second quarter of 2014. Second quarter 2014 production was affected by equipment issues early in the quarter. Third-quarter 2014 production was also positively affected by a change to the gas lift configuration on our wells. Fourth quarter 2014 production to date is averaging over 240 boe/d.
• The third quarter 2014 average realized natural gas price was $4.83 per thousand cubic feet (Mcf), $0.46 per Mcf higher than the price realized in the second quarter of 2014 and $0.88 per Mcf higher than the third quarter of 2013. This higher price during 2014 reflects the Company's new gas sales contract and changing exchange rates.
• The average price realized for natural gas liquids (NGLs) in the quarter was $84.29 per barrel (bbl), an increase of $2.11 per bbl over the second quarter of 2014.
• There were $6,241 in capital expenditures during the quarter.