Maurel & Prom: Q1 2022 Activity

Regulatory News:

Maurel & Prom (Paris:MAU):

Key indicators for the first quarter of 2022

M&P’s working interest production in Q1 2022 was 25,646 boepd. The average sale price of oil was $94,2/bbl for the period, up 13% from Q4 2021 ($83.1/bbl).

The Group’s valued production (income from production activities, excluding lifting imbalances and inventory revaluation) in Q1 2022 was $165 million. The restatement of lifting imbalances, net of inventory revaluation, resulted in a negative impact for the quarter of $35 million. This was because the Group’s lifting schedule included only one lifting in Gabon in January.

Consolidated sales for Q1 2022 therefore totalled $130 million.

Production activities

• Gabon

M&P’s working interest oil production (80%) on the Ezanga permit in Q1 2022 was 14,222 bopd (gross production: 17,777 bopd).

As announced on 18 March during the presentation of the Group’s 2021 results, there were a number of equipment issues in the first quarter, causing extended interruptions to production on certain wells. Work to restart production is now well under way, and by mid-April M&P’s working interest production was back to over 15,200 bopd (gross production: 19,000 bopd). Efforts to further increase production are continuing, with the ongoing development drilling campaign, well intervention and optimised water injection on the various fields.

• Tanzania

M&P’s working interest gas production (48.06%) on the Mnazi Bay permit in Tanzania in Q1 2022 was 47.3 mmcfd (gross production: 98.5 mmcfd), up 16% from Q1 2021 and up 8% from Q4 2021. It was a new quarterly production record for Mnazi Bay.

• Angola

M&P’s working interest production (20%) on Block 3/05 in Q1 2022 was 3,536 bopd (gross production: 17,680 bopd).

Unfortunately, the workover carried out on Block 3/05A between the end of 2021 and beginning of 2022 was not successful and production on the permit was unable to resume.

Drilling activities

In March 2022, M&P acquired a new drilling rig, the C18, which will be operated by its drilling subsidiary, Caroil. The acquisition, for a consideration of $11 million (of which $2.5 million was paid in March), should give the Group the ability to ramp up its activity in Gabon. The technical specifications of the C18 will provide clients with improved drilling performances upon arrival in Gabon, which is expected by the end of 2022. The rig is currently in Canada where it is in the final stages of construction and adaptation before shipping.

As a reminder, Caroil currently operates the C3, which is being used in M&P’s development drilling campaign on the Ezanga permit. The C16 is also expected to resume operations in Gabon this summer.

Financial position

The cash position as of 31 March 2022 was $187 million, versus $196 million at 31 December 2021, after a $50-million debt repayment in Q1 2022 ($44 million for the Term Loan and $6 million for the Shareholder Loan). Gross debt now stands at $489 million, with net debt amounting to $302 million (versus $343 million at 31 December 2021).

The Term Loan and Shareholder Loan refinancing process is nearing completion. The banking pool is now in place and the transaction is expected to be completed by mid-May 2022. As announced previously, and subject to the refinancing agreements being signed before the ex-dividend date of 1 July 2022, the dividend will be doubled from €0.07 to €0.14 per share, taking the total amount paid out to $30 million.

For more information, visit www.maureletprom.fr/en/

This document may contain forward-looking statements regarding the financial position, results, business activities and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.

Maurel & Prom is listed for trading on Euronext Paris
CAC All-Tradable – CAC Small – CAC Mid & Small – Eligible PEA-PME and SRD
Isin FR0000051070/Bloomberg MAU.FP/Reuters MAUP.PA

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