PETSEC ENGY 
Key Points:
- Net loss after tax for the six months to 30 June 2016 was US$ 5.1 million.
- Net oil and gas revenues (after royalties) of US$0.3 million were generated from production of 105 MMcfe at an average gas equivalent sales price of US$3.14/Mcfe.
- Acquisition of 100% working interest (82.5% participating interest) and operatorship of the Damis (Block S-1) Production licence in Yemen which holds 5 sizeable oil and gas discoveries including the developed/productive An Nagyah Oilfield.
- Main Pass Block 270 #3 BP 1 discovery well (Hummer Project) - platform jacket construction complete, load out and installation to commence early September 2016. Tie back, completion and testing of the well will follow in 2nd half 2016.
- Award of Main Pass Block 274 lease (Hummer Project) at the Central Gulf of Mexico Lease Sale 241.
- At 30 June 2016, the consolidated entity had no debt and held total cash deposits of US$9.2 million (including US$3.7 million of restricted deposits).
Subsequent Events
- Established US$15 million Secured Unlisted Convertible Note Facility to provide flexibility for the Group's ongoing funding requirements to progress its development projects in the USA and Middle East and North Africa ("MENA").
Commentary on results
General
The Appendix 4D results and the accompanying condensed consolidated interim final financial statements are prepared in accordance with Australian Accounting Standards (AASBs) and International Financial Reporting Standards (IFRS) and are presented in United States dollars.
Current period: Six months ended 30 June 2016; Previous corresponding period: Six months ended 30 June 2015.
Key Operating/Financial Data
- Net production for the six months ended 30 June 2016 was 85 MMcf of gas and 3,451 barrels of oil/condensate (equivalent to 105 MMcfe). This was 52% lower than the previous corresponding period production of 218 MMcfe due to the shut-in of both the Adeline Sugar Factory No.4 and Williams No. 2 wells for an extended period of time. Refer to the "Review of Operations" section in the Directors Report on page 5 for further details.
- Net oil and gas revenues (after royalties) for the current period of US$0.33 million were 49% lower than that achieved in the previous corresponding period of US$0.65 million, mainly attributable to lower production volumes.
- The consolidated entity reported negative EBITDAX US$4.1 million for the current period (previous corresponding period: EBITDAX of US$1.1 million), reflecting the lower oil and gas revenue base coupled with additional operating and GG&A costs associated with the acquisition of the An Nagyah Oilfield in Yemen.
- The consolidated entity incurred a net loss after tax for the current period of US$5.1 million (previous corresponding period: net loss after tax of US3.7 million) due to the aforementioned operating factors.
Key Performance Indicators
- Petsec Energy realised an average net gas equivalent sales price of US$3.14/Mcfe for the current period, 6% higher than the US$2.97/Mcfe achieved for the previous corresponding period, reflecting a higher proportion of liquids production in the current period. The consolidated entity received an average sales of price US$2.32/Mcf and US$38.66/bbl for its natural gas and oil/condensation production, respectively. This compares to US$2.79/Mcf and US$53.83/bbl for its natural gas and oil/condensation production in the previous corresponding period.
- Current period unit operating costs of US$43.95/Mcfe (previous corresponding period of US$10.51/Mcfe) and negative EBITDAX of US$39.19/Mcfe (previous corresponding period: US$5.06/Mcfe) reflected the combined effect of lower production volumes and increased operating costs relating to Petsec Energy's expansion in MENA.
- Unit DD&A expense was US$1.14/Mcfe for the current period (previous corresponding period: US$0.83/Mcfe).
Other Financial Data
- Acquisition, exploration and development expenditures for the six months ended 30 June 2016 of US$3.9 million comprised acquisition cost and working capital adjustments of the Damis (Block S-1) interest in Yemen and development costs associated with the Main Pass 270 #3 BP 1 well (Hummer Project).
Dividend
Petsec Energy Ltd does not propose the payment of a dividend in respect of the six months ended 30 June 2016.
Net Tangible Asset Backing
The consolidated entity's net tangible asset backing per ordinary security for the current period was US$0.05 (previous corresponding period: US$0.12).
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About Petsec Energy Ltd:
Petsec Energy Ltd (ASX:PSA) (OTCMKTS:PSJEY) is an independent oil and gas exploration and production company listed on the Australian Stock Exchange and on the US OTC Market. It has operations in the shallow waters of the Gulf of Mexico and Louisiana Gulf Coast region of the USA, and in the Republic of Yemen.
Source:
Petsec Energy Ltd
Contact:
Paul Gahdmar Company Secretary & Group Financial Controller Petsec Energy Ltd T: +61-2-9247-4605 Mr. Manny Anton Head of Investor Relations Petsec Energy Ltd T: +61-2-9247-4605 www.petsec.com.au
