Manas Petroleum posts Q1 profit, updates on exploration activities
For the three-month period that ended March 31, the company, based in Barr, Switzerland, posted a profit of C$13.99 million, or eight cents per share, as compared to a net loss of C$9.87 million or eight cents per share, for the same period in 2011.
Highlights from the company’s operations in the first quarter include continued integration and interpretation of seismic data acquired in 2011 by the company’s Mongolian subsidiary, Gobi Energy Partners.
Gobi is currently focusing on six areas with 15 prospects, and Manas said a passive seismic campaign using low-frequency spectroscopy was started in April to assist in ranking the prospects.
A 2D seismic campaign (vibroseis) to acquire 321 kilometres is planned for June 2012.
Manas said that a contract for 2D seismic activity has been signed and a contract for drilling is under negotiation, with mobilization of the crew planned for May.
Spudding is scheduled for July, subject to rig availability, and Manas said Gobi intends to drill two wells back-to-back. The contract has an option for drilling additional wells in 2013.
In Mongolia, Manas owns record title to the two production sharing contracts covering Blocks XIII and XIV through its wholly-owned subsidiary DWM Petroleum AG, but 26 percent of the beneficial ownership interest in these blocks is held in trust for others.
In Tajikistan, the company’s Tajik subsidiary, Somon Oil, continued with the compilation and integration of its technical database.
As of quarter-end, Manas said a total of 793.6 kilometres of 2D seismic had been recorded, with processing and interpretation ongoing.
Somon Oil finalized the acquisition of a total of 871 kilometres of 2D seismic after March 31, and drilling planning for the first two wells is ongoing. Manas said preliminary well designs and well budgets have been prepared.
The company noted that earlier this month, the Government of the Republic of Tajikistan ratified the Production Sharing Agreement with Somon Oil.
Manas said that under the terms of the agreement, Somon Oil is granted the "exclusive right and authority to carry out all petroleum exploration, development and production activities in the contract area for a term of 30 years," with the right, under specified circumstances, to renew for up to two additional five year periods.
Manas holds a 25 per cent interest in CJSC South Petroleum Company, and said that during the first quarter of 2012, CJSC provided support for drilling planning and seismic operations in Tajikistan.
The company reported that CJSC recorded 24 kilometres of 2D seismic in the Tuzluk Block as part of the Tajik seismic survey.
The agreement provides for a framework within which exploration, development and production activities will be planned, conducted and paid for, said Manas.
In the Kyrgyzstan Republic, Manas has signed a US$54 million farm-out agreement with Santos International Holdings, a subsidiary of Australia's third largest oil and gas company. The unification and update of resource evaluation of all Kyrgyz prospects are still ongoing.
In Albania, Manas participates in a 1.7 million acre exploration project through its 31.7 per cent equity interest in PetroManas Energy (CVE:PMI).
PetroManas is entering the operational phase of its drilling program on its Albanian properties, said Manas, adding that a drilling contract has been signed with KCA Deutag and three wells are planned to be drilled this year.
PetroManas plans to spud the first well in the second quarter. Manas noted that PetroManas farmed out 50 per cent of its interest to Shell.
Total operating expenses increased in all segments during the first quarter, said the company. Exploration costs rose due to higher exploration activities in Mongolia.
The company, which had cash and equivalents of approximately C$10.7 million at quarter-end, also saw higher stock-based compensation expense.
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