PETROLIA NOCO Condensed interim financial statement - 2H 2023
FINANCIAL REPORT FOR THE SECOND HALF OF 2023
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Condensed interim financial statement - 2H 2023
HIGHLIGHTS FOR 2H 2023
- Acquired 12.26% interest in Brage license from Vår Energi ASA
- Net production of 2390 boe/day from Brage in 2H 2023
- Løvmeis well scheduled to be drilled in Q3 2024 with potential first oil in Q1 2026
- Development work on PL882 (Dugong) is ongoing. First oil expected 2029
- Established NOK 75.9 million secured loan facility
Key figures (NOK million) | ||||
2H2023 | 1H2023 | 2H2022 | 2023 | |
Revenues | 2.2 | 7.6 | 32.8 | 9.8 |
Net profit/(Loss) | -21.2 | -13.2 | -19.8 | -34.4 |
Cash flow from operations | 27.1 | -51.3 | -34.8 | -24.3 |
Cash flow from investing | -140.4 | -13.1 | 1.8 | -153.5 |
Cash flow from financing | 116.4 | 35.8 | 65.7 | 152.3 |
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ABOUT PETROLIA NOCO AS
Petrolia NOCO AS is an independent exploration and production company leveraging new technologies and innovative collaboration models to discover and develop oil and gas resources on the Norwegian continental shelf. The company´s goal is profitable growth and value creation for shareholders, employees and society through smart reinvestment of cash flow from producing fields into new licenses through exploration, field development and acquisitions. Our strategic focus is on exploring areas near existing infrastructure for swift tie-backs while challenging traditional perspectives to revitalize legacy assets or discover new plays. The company also takes a proactive approach towards reducing emissions through participation in carbon capture and storage and is also supporting all lower emission initiatives on Brage and other assets.
Petrolia NOCO has 657 shareholders as of 31.12.2023. Its shares are registered in the Norwegian Central Securities Depository (Verdipapirsentralen, VPS) with ISIN: NO0010844301. The shares are registered with the ticker PNO on the NOTC (www.notc.no), a marketplace for unlisted shares. The LEI code is 549300OTY8HENWE3AL33.
FINANCIAL REVIEW
Petrolia NOCO reported revenues of NOK
2.2 million in 2H 2023, compared with NOK 32.8 million a year ago. While the 2022 revenues included lifting of oil produced in both 2021 and 2022, the 2023 revenues reflect the low production from Enoch in 2023.
Condensed interim financial statement - 2H 2023
The Company had exploration expenses of NOK 42.2 million compared with NOK 42.3 million in 2H 2022. During 2H 2023. capitalised exploration expenses of NOK
13.1 million related to Dugong has been reversed and booked as ordinary exploration expenses.
The operating result (EBIT) was NOK -59.5 million compared with NOK -47.9 million the previous year.
Revenues and expenses related to Brage have not been recognized in the 2H 2023 financial statement.
Total assets were NOK 1093.3 million on 31 December 2023 compared to NOK
321.5 million a year ago. The significant increase is a result of the Brage transaction.
Goodwill as of 31 December 2023 is NOK
- million and is based on the Purchase Price Allocation (PPA) related to the Brage acquisition. The goodwill consists of NOK
- million of technical goodwill and negative ordinary goodwill of NOK 63.3 million.
Cash and cash equivalents on 31 December 2023 were NOK 29.9 million, down from NOK 55.4 million at the end of 2022.
Book equity at the end of 2023 was NOK -
3.6 million compared with NOK 10.8 million in 2022.
In December, the Company refinanced a NOK 83.6 million loan secured by tax refunds with a NOK 75.9 million loan with a mortgage in Brage. An additional 2nd priority loan of NOK 100 million was provided by two shareholders. The proceeds from the new loans were applied to finance the Brage acquisition.
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Condensed interim financial statement - 2H 2023
BRAGE TRANSACTION
In October 2023, the Company signed an agreement with Vår Energi ASA to acquire its 12.26% interest in the Brage field. The transaction was completed on 29 December 2023. The consideration related to the transaction was NOK 137 million, including the acquisition of the seller's tax balance, valued at NOK 62 million. The effective date for the transaction with respect to tax is 1 January 2023, while the acquisition date with respect to accounting is 29 December 2023. Hence, the 2023 financials from Brage are not included in the Company's profit and loss statement but only affect the completion statement determining the settlement with Vår Energi ASA.
LICENSE PORTFOLIO
Petrolia NOCO holds interest in 10 licenses in the North Sea and the Norwegian Sea, including 2 operatorships.
Norwegian Sea licenses
- PL 1013 (20%)
- PL 1013 B (20%)
- PL 935 (10%)
- PL 1221 (40%) - Operator
North Sea Licenses
- PL 882 (20%)
- PL1210 (20%)
- PL 1181 (60%) - Operator
- PL055 Brage Unit
- PL 018 C (11.654%)
- PL 048 D (21.8%)
OPERATIONAL DEVELOPMENTS
Brage (12.26%)
PNO acquired a 12.26% interest in Brage with effective date 1 January 2023. Net production to PNO was 2390 boe per day in 2H 2023, compared with 978 boe per day in 1H 2023. The 2H production was boosted by the Talisker East well that started to produce in May. Two additional wells came on stream during 2H 2023.
PL882 (20%) - Dugong
PL 882 was awarded as part of the APA 2016 round, where Petrolia recognised that the blocks to the west of Snorre Field were under-explored and the area would be better imaged with a new broadband seismic.
The strong partnership led to a de-risking of the Dugong prospect which was spudded towards the end of Q2 2020 and was subsequently announced as a commercial discovery.
The recoverable resources are estimated to be between 29 - 84 million barrels of oil equivalent.
The PL 882 license partnership is working on several field development scenarios. First oil is now expected in 2029.
PL 1013 (20%)
In 1H 2022 the Company farmed down 40% of its interest in the license to
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Equinor. The license has taken a drill decision and an exploration well is planned for Q3 2024. The Løvmeis prospect is located close to existing facilities. If successful, the partnership plans a fast-track development with production commencing in early 2026.
PL 935 (10%)
The Bounty prospect in the PL 935 license was drilled in 2022 and determined as a dry well with shows. The operator and partners are now evaluating the data obtained to consider if additional wells shall be drilled. Interpretation of the well results are positive and de-risk the up- flank high impact prospect. It is located in the Frøya High area. A well will be drilled in the neighbouring Licence in Q4 2024 that could prove up the Bounty reserves.
PL 1181 (Operator 60%)
The license was awarded under the APA 2022. The license is located in the northern part of the North Sea and will strengthen the Company's position in the Tampen area, where it already holds interest in the Dugong discovery.
Enoch (4.36%)
The Enoch Field is an oil and gas producing field in the central part of the North Sea on the border to the British sector, 10 km northwest of the Gina Krogh field. The field is operated by Repsol Sinopec North Sea Limited.
Due to technical problems the well was shut most of 2H 2023 and the net
Condensed interim financial statement - 2H 2023
production averaged at only 4 barrels of oil equivalents per day (Boe/day) for Petrolia NOCO during the second half of 2023.
Flyndre (0.825%)
The Flyndre Field is an oil and gas producing field on the border between the Norwegian and UK sectors of the North Sea, 35 km northwest of the Ekofisk Field. The field is operated by Petrogas NEO UK Limited.
The Flyndre field did not have any production during 2023. Following an unsuccessful attempt to restart production, the field was shut down permanently in July 2023.
EVENTS AFTER BALANCE SHEET DATE In January 2024, the Company was awarded interest in two licenses in the Norwegian Awards in Predefined Areas (APA 2023). License PL 1221 will be operated by PNO with a 40% working interest. License partner is Equinor with 60% working interest. License PL 1210 will be operated by Wintershall DEA (40% working interest) with PNO and Equinor as license partners, both with 30% working interest.
After careful evaluation of the resource potential in the licenses, the license groups have decided to relinquish the following licenses: PL 882 B, PL 992, PL 994, PL 1106, PL 1107 and PL 1150 S
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Condensed interim financial statement - 2H 2023
Bergen, 5
April 2024
Brede Bjøvad Larsen | Dr Robert Arnott | Sjur Storaas |
Board member | Chairman | Board member |
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Condensed interim financial statement - 2H 2023
INCOME STATEMENT | ||||
2H | 1H | 2H | Unaudited | |
(Amounts in 1,000 NOK) | 2023 | 2023 | 2022 | 2023 |
Operating income | 2,164 | 7,646 | 32,814 | 9,810 |
Production cost | 449 | -3,323 | -13,138 | -2,874 |
Exploration expenses | -42,354 | -16,633 | -44,128 | -58,987 |
Payroll and related cost | -5,832 | -12,802 | -6,678 | -18,634 |
Depreciation and amortisation | -575 | -577 | 65 | -1,152 |
Other operating expenses | -13,359 | -6,861 | -15,533 | -20,220 |
Operating loss | -59,507 | -32,549 | -46,599 | -101,866 |
Finance income | 1,235 | 1,319 | -637 | 2,554 |
Finance costs | -11,552 | -9,170 | -9,062 | -20,723 |
Net financial items | -10,318 | -7,851 | -9,699 | -18,169 |
Loss before income tax | -69,825 | -40,400 | -56,298 | -110,225 |
Net Income tax credit | 48,621 | 27,228 | 36,534 | 75,849 |
Loss for the year | -21,204 | -13,173 | -19,764 | -34,376 |
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Condensed interim financial statement - 2H 2023 | ||||
STATEMENT OF FINANCIAL POSITION | Audited | |||
(Amounts in 1,000 NOK) | 31 Dec 2023 | 30 June 2023 | 31 December 2022 | |
ASSETS | ||||
Goodwill | 152,485 | 0 | 0 | |
Deferred tax assets | 160,527 | 0 | 0 | |
Oil and gas properties | 337,221 | 0 | ||
Exploration and evaluation assets | 151,539 | 162,176 | 149,033 | |
Right of use assets | 2,053 | 750 | 2,965 | |
Property, plant and equipment | 2,375 | 2,397 | 703 | |
Non-current receivables | 77,216 | |||
Total non-current assets | 883,414 | 169,532 | 152,702 | |
Inventory | 70,370 | 0 | 1,528 | |
Prepayments and other receivables | 40,227 | 8,918 | 23,930 | |
Tax receivable refund tax value | ||||
exploration expenses | 69,457 | 120,569 | 88,020 | |
Cash and cash equivalents | 29,893 | 26,814 | 55,403 | |
Total current assets | 209,947 | 156,301 | 168,881 | |
Total assets | 1,093,362 | 321,068 | 321,583 | |
EQUITY AND LIABILITIES | ||||
Share capital | 17,000 | 16,000 | 16,000 | |
Other equity | -20,576 | 1,627 | -5,200 | |
Total equity | -3,576 | 17,627 | 10,800 | |
Deferred taxes | 0 | 104,363 | 99,041 | |
Decommissioning provision | 675,297 | 9,923 | 9,923 | |
Lease liability | 1,112 | 1,544 | 1,956 | |
Borrowings | 205,750 | 80,750 | 80,750 | |
Total non-current liabilities | 882,159 | 196,580 | 191,671 | |
Trade creditors | 8,629 | 22,186 | 23,541 | |
Payable taxes | 6,500 | 0 | 6,500 | |
Lease liability - current | 1,110 | 813 | 1,110 | |
Other current liabilities | 122,639 | 49,061 | 20,461 | |
Borrowings | 75,900 | 83,900 | 67,500 | |
Total current liabilities | 214,779 | 106,861 | 119,112 | |
Total liabilities | 1,096,938 | 303,441 | 310,783 | |
Total equity and liabilities | 1,093,362 | 321,068 | 321,583 | |
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Condensed interim financial statement - 2H 2023
CASH FLOW STATEMENT | ||||
2H | 1H | 2H | Unaudited | |
(Amounts in 1,000 NOK) | 2023 | 2023 | 2022 | 2023 |
Profit/loss before income tax | -69,825 | -40,401 | -56,298 | -110,225 |
Tax refund exploration cost | 88,020 | 0 | -10,291 | 88,020 |
Depreciation and amortisation | 134 | 1,018 | -65 | 1,152 |
Gain/loss on sale of asset | -17 | 0 | -414 | -17 |
Changes in account receivables | 1,159 | -1,159 | 29,511 | 0 |
Changes in accounts payable | 2,867 | -17,778 | 1,354 | -14,911 |
Changes in other current balance sheet items | 4,738 | 6,970 | 1,425 | 11,708 |
Net cash flow from operating activities | 27,077 | -51,351 | -34,779 | -24,273 |
Proceeds from sale of assets | 0 | 0 | 0 | 0 |
Net cash paid in business combination | -148,581 | 0 | 0 | -148,581 |
Investment in oil and gas properties | -3 | 0 | 0 | -3 |
Purchase of intangible assets | -2,386 | 0 | 0 | -2,386 |
Investment in exploration and evaluation assets | -2,506 | 0 | 0 | -2,506 |
Purchase of property, plant and equipment | 13,034 | -13,084 | 1,769 | -50 |
Net cash flow from investing activities | -140,443 | -13,084 | 1,769 | -153,526 |
Net capital increase | 0 | 20,000 | 30,000 | 20,000 |
Repayment of lease liabilities | -1,110 | 0 | 0 | -1,110 |
Proceeds from issuance of long term debt | 128,600 | 16,400 | 5,000 | 145,000 |
Proceeds from issuance of short term debt | 22,400 | 0 | 47,421 | 22,400 |
Repayment of long term debt | -20,000 | 0 | -15,000 | -20,000 |
Repayment of short term debt | -13,445 | -555 | -1,743 | -14,000 |
Net cash flow from financing activities | 116,445 | 35,845 | 65,678 | 152,290 |
Net change in cash and cash equivalents | 3,079 | -28,589 | 32,668 | -25,510 |
Cash and cash equivalents at start of period | 26,814 | 55,403 | 22,735 | 55,403 |
Cash and cash equivalents at end of period | 29,893 | 26,814 | 55,403 | 29,893 |
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Condensed interim financial statement - 2H 2023
V ISIT IN G ADD RE SS
Espehaugen 32 B
N-5258 Blomsterdalen
Norway
P OSTAL ADD RE SS
Espehaugen 32 B
N-5258 Blomsterdalen
Norway
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Petrolia Noco AS published this content on 05 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2024 13:25:06 UTC.
