Canada: Pacific Rubiales Q1 Net Earnings at USD 258 Million

Pacific Rubiales Energy Corp. today released its financial results for the quarter ended March 31, 2012.

First Quarter 2012 Highlights

  • EBITDA was $538 million, up 48% year over year, driven by production growth and higher netbacks.
  • Net Earnings were $258 million, compared to a net loss of $70 million a year earlier and $81 million in the fourth quarter.
  • Adjusted Net Earnings from Operations were $293 million, up 118% from $134 million in the first quarter of 2011, and an increase over the $172 million reported in the fourth quarter.
  • Operating netbacks from production were a record $73.76/boe, an increase of 39% over the first quarter 2011, driven by higher oil prices and higher operating margins.
  • Production net of royalties was a total of 93,573 boe/d including 1,703 bbl/d* produced from the recent acquisition in Peru, up 17% over the first quarter of 2011, and an increase from the 90,959 boe/d produced in the fourth quarter.
  • Total capital expenditures were $267 million compared to $176 million in the same period in 2011, with 38% ($102 million) invested in infrastructure and 34% ($90 million) in exploration.
  • Exploration success of 84% drilling a total of 19 gross exploratory wells of which 16 were successful.
  • Additional interest acquired in the Puerto Bahia Port Project to develop strategic oil transport and export infrastructure in Colombia.
  • An agreement was signed with Belgium based Exmar NV to advance future liquefied natural gas (LNG) production and export development from Colombia, supported by the Company’s large 2P reserves at La Creciente and the recent exploration success on the Guama block.
  • An acquisition of a 49% undivided participating interest in the Z-1 block offshore Peru, providing the Company with its first production in Peru and future development and exploration potential.
  • An acquisition of a 10% net participating interest in the PPL237 license block and Triceratops structure onshore Papua New Guinea, providing the Company with the potential for significant resource capture.
  • In the first quarter of 2012, the Company increased its dividend 18% to $0.11/share, reflecting confidence in the continued strength of the business.

Ronald Pantin, Chief Executive Officer of Pacific Rubiales commented: “The first quarter was very strong from both a financial and operational standpoint, with EBITDA, net earnings and earnings from operations all showing gains, production was up 17% from a year ago, and the Company made a number of strategic moves and investments to strengthen and expand its exploration and development portfolio and provide additional foundation for future growth. Despite widespread permitting delays and transportation disruptions affecting the O&G Industry in Colombia during the first quarter, Pacific Rubiales was able to increase its production 3% from fourth quarter 2011.

In the CPE-6 E&P block, we expect to receive the exploration permit license in the current quarter that will allow us to continue our exploration activities consisting of drilling, well testing and seismic data acquisition through the remainder of the year.

In Colombia the Company agreed to invest equity capital to advance the Puerto Bahia Port Project which when completed in 2014 will provide new oil storage and export capacity infrastructure on the Caribbean coastline, highly strategic to the Company’s future growth plans to double its production. In addition, we signed a natural gas Liquefaction, Regasification, Storage and Loading Services Agreement with Belgium based Exmar NV which will lead to the construction of LNG export facilities on the Caribbean coast, strategic to the future development of the Company’s large natural gas reserves and resources in northern Colombia.

The Company entered into an agreement with BPZ Resources to acquire a 49% participating interest in the Z-1 exploration and development block, offshore Peru. This will provide the Company with its first oil production in Peru, has significant opportunities to expand production through development and exploration, and complements our existing exploration acreage in the country. We are very excited about the potential of this block and are looking forward to working with our new partner.

In Papua New Guinea, we signed a farm-in agreement to acquire a 10% net interest in the onshore PPL237 prospect license and the Triceratops structure. This is an exciting opportunity for the Company to participate in a low risk, high reward investment with potential to capture large resources on the doorstep of large southeast Asia markets.

In summary, we remain confident in progressing the activity and production guidance set out earlier in the year, all the while strategically positioning the Company for future growth.”


LNG World News Staff, May 10, 2012