RSS   Newsletter   Contact   Advertise with us

Petrominerales funds flow saw a 15% decrease

Share on Twitter Share on LinkedIn
Staff writer ▼ | August 5, 2013
Petrominerales announced second quarter financial results and an operational update highlighted by July production of 23,975 barrels of oil per day.
Petrominerales
PetromineralesPetrominerales announced second quarter financial results and an operational update highlighted by July production of 23,975 barrels of oil per day.


Petrominerales sales volumes of produced oil of 20,770 bopd and operating netback of $54.54 per barrel resulted in funds flow from operations of $86.9 million ($1.03 per basic share) for the second quarter, a 15% decrease over the preceding quarter. The change in funds flow primarily relates to 9% lower world oil prices and 2% lower oil production offset by increased income from the oil marketing business.

Capital expenditures in the second quarter were $88.6 million, representing an 8 percent increase from the first quarter of 2013. We drilled a consistent amount of wells in the quarter (8) and had increased spending on the Block 25 3D seismic program that we completed in July.

During the second quarter Petrominerales earned $6.5 million of operating cash flow through the purchase and re-sale of third party oil using available capacity on pipeline assets and an additional $4.6 million from other marketing activities, nearly doubling our first quarter profit.

Petrominerales is pursuing strategic options regarding our pipeline assets. The company have entered into an agreement with three other OCENSA shareholders in a process to sell a combined 27% equity interest in the OCENSA pipeline. Petrominerales expect this process to be completed in the fourth quarter of 2013.

In order to facilitate participation in this combined sales process, Petrominerales extended the put repayment date on our 2016 convertible debentures to February 25, 2014.


 

MORE INSIDE POST