I did just that a few days ago.
Everything now crossed!
;)
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I did just that a few days ago.
Everything now crossed!
;)
up to 26 on the asx and no report out yet what are people thinking ?
PPP
31/07/2008
QUARTER
REL: 1321 HRS Pan Pacific Petroleum NL
QUARTER: PPP: JUNE 2008 QUARTERLY ACTIVITIES REPORT _31 JULY 2008
JUNE 2008 QUARTERLY ACTIVITIES REPORT
Tui Area Oil Project (PMP 38158) Taranaki Basin (PPP interest 10%)
The four existing Tui field production wells continue to perform strongly.
Production from the Tui oil fields totalled 3.8 million barrels (PPP 0.38
million barrels) for the June quarter, averaging close to 42,000 barrels a
day despite rising water production. Production was curtailed at the end of
June due to poor weather delaying tanker loading, but as of mid July
production had returned to around 42,000 barrels per day. Cumulative field
production to the end of June 2008 was 14.2 million barrels. (PPP share
1.42m/b).
The anticipated detailed Tui field re-assessment was undertaken resulting in
an increase in the initial proved and probable (2P) reserves from 47 million
to 50.1 million barrels.
The terms of the FPSO contract have been extended through to 31 December
2022. Under the contract with Prosafe Production, the owner and operator of
the Umuroa, the fixed term of the charter has been extended to 31 December
2015 followed by seven, one-year options to extend through to 31 December
2022. The full operating cost of the charter for the financial year ending 30
June 2009 is forecast to be approximately US$61million. This rate reduces
annually, as negotiated in the FPSO contract, so that operating costs fall as
oil rates decline over the field life.
Planning for the previously announced additional development well, Tui 4H,
continues with long lead equipment currently being purchased. Reserves
attributable to Tui 4H are included in the 50.1 million barrels of 2P
reserves discussed above. Studies to accommodate Tui 4H production into both
the subsea and FPSO facilities are also well advanced. Tui 4H is currently
expected to be drilled in late 2009 to early 2010 depending on rig
availability. Additional appraisal and/or exploration drilling in and around
the Tui fields is also under consideration for the period of the same
drilling campaign.
Toke permit (PEP38499) Taranaki Basin (PPP interest 10%)
Interpretation of the 2007 Toke seismic data has been completed and the joint
venture operator's recommendation as to further work is awaited.
Hector permit (PEP 38483) (PPP interest 14.091%)
The permit operator is nearing completion of its assessment of the Hector 1
exploration well results and is considering options for further seismic or
exploration in the permit.
Maitland WA-33R (PPP interest 10%)
The joint venture Operator, Apache, has completed an assessment of the
Maitland project after incorporation of the results from the 2007 drilling
campaign. While the technical challenges of drilling and producing in the
Maitland field are in the process of being resolved, the Maitland 2 core data
and Maitland 3H test results have resulted in some reserves uncertainty. The
Operator is now working on options to reduce this uncertainty to a level that
would allow a development to proceed. These options include the possibility
of further appraisal drilling and flow testing prior to a development
decision being taken.
New Ventures/Senior Appointment
Following on the strong performance and cash flows from the Tui project and
its firm commitment to expand the Company's activities the Board has
appointed Mr Tom Prudence to the newly-created position of General Manager,
Exploration and Production to assist with this process. Mr Prudence will in
addition to his role as manager of the Company's existing operations, be
tasked with the job of developing exploration and production opportunities
for the Company. Mr Prudence held the position of Principal Adviser/Chief
Geoscientist for RISC Pty Ltd, an international consultancy for the last four
years. In this capacity he has advised on multiple diverse projects including
strategy and new business developments. His new role with the Company will
commence in September of this year.
.
Financial Highlights as at 30 June 2008 (unaudited)
Current Assets include: Cash held (see note below) A$91.5m
Receivables for oil sales (gross) A$18.3m
Tui oil inventory (WMP share) 40,412 barrels
Current Liabilities include: Hedging - call options over 87,744 barrels @
US$92/barrel (marked to market)
A$ 4.4m
Accrued royalty taxes A$17.0m
Income taxes (preliminary estimate) A$22.0m
Tui project loan nil
Note:
The Tui Project loan with CBA was repaid in full on 30 June 2008. Also on
that date, US$10 million (A$10.4m) was deposited with CBA as cash collateral
to support the Tui FPSO letter of credit. This deposit forms part of the
abovementioned cash held of A$91.5m.
Hedged Position
During 2007 the Company hedged by way of put options approximately 719,000
barrels of oil to provide downside protection in oil prices. The Company
partially offset the cost of the put options by selling call options
requiring the company to deliver no more than 187,600 barrels of oil at
$92.00. As at 30 June 2008, of the 187,600 barrels of oil, 72,890 barrels had
expired at no cost to the Company, while a further 47,767 barrels were cash
settled on maturity of the call options at a cost of USD$727,117. The
remaining 87,744 mature over the period July 2008 to March 2010.
B Flatters-Wright
Company Secretary
31 July 2008
Excellent results,
and big kudos for detailing the hedging position clearly!!!
Thanks to Digger, the hedging position is nice and clear. Not much exposure in the hedging which is good news.
I am rather surprise the sp is so weak. I like the result and the reduced exposure to the hedging. A$91 million cash in the bank and market cap is only A$138m with continue Tui revenue flowing into the bank!!!!! Surely this has to be one of the cheapest company on the market.
Reserve uncertainties for maitland. This seems to me to be the fly in the oitment,otherwise it is hard to see why PPP has such a low SP.The way of the investing public is such that PPP will have to pass on a dividend to attract attention to itself.It is certainly capable of doing so hence i wondered if one might be coming with the release of the annual report.The only thing needed is expenses for maitland and some exploration but theses should be easily covered by TUI,so i fear unless a div is coming the company will be unnoticed by the market.
Great to see the hedging settled.Not as bad as it could be but then things should be made clear as otherwise the worst is always suspected.
Yes, I reckon a divvy is more than likely, following the example of its stablemate, NZO. After all, they have the same pedigree, majority owners and " jockeys".
;)
Previous Quarterly:
Financial Highlights as at 31 March 2008
Assets: Cash held A$69.6m
Receivables for oil sales $12.9m
Tui oil inventory 40,900 barrels
Obligations:
Tui project loan (US14.13m) A$15.4m
Tui FPSO bank letter of credit(US$10m) $10.9m
Accrued royalty taxes $ 9.9m
This Quarterly:
Current Assets include: Cash held (see note below) A$91.5m
Receivables for oil sales (gross) A$18.3m
Tui oil inventory (WMP share) 40,412 barrels
Current Liabilities include: Hedging - call options over 87,744 barrels @
US$92/barrel (marked to market)
A$ 4.4m
Accrued royalty taxes A$17.0m
Income taxes (preliminary estimate) A$22.0m
Tui project loan nil
Does this equate to:
Q3 Q4
Assets:
$69,600,000.00 $91,500,000.00 Cash
$12,900,000.00 $18,300,000.00 Receivables for oil sales
$5,317,000.00 $5,252,000.00 Oil Pending Sale
$87,817,000.00 $115,052,000.00 TOTAL
Commitments:
-$15,400,000.00 -$4,400,000.00
-$10,900,000.00 -$17,000,000.00
-$9,900,000.00 -$22,000,000.00
-$36,200,000.00 -$43,400,000.00 TOTAL
Nett:
$51,617,000.00 $71,652,000.00
The 2 lots of taxes seem quite high...
But a gain of 20million for the quarter.
For a company worth 180 Million market value.....
And it closed down on the NZX....