Operational and Financial Highlights
The 12 months to 31 December 2010 have left the Group with a strong balance sheet with which to accelerate work programmes on the current portfolio and pursue other opportunities.
2011 H1 Operational Highlights
- Miran West-3 well, Kurdistan, commenced drilling on 7 August 2011
- Miran 3D seismic acquisition is nearing completion and 2D seismic acquisition in the southern portion of the Miran Block has commenced
- Miran Field conceptual engineering studies have been completed for early development in 2013, followed by full field development in 2015
- An initial gas marketing study for the Miran Field has been completed
- Completed drilling well 363 in Russia which is producing 1,205 bopd
- Completed acquisition of 2D seismic data in both Mali and offshore Malta
- Seismic data being processed and interpreted for Tanzania, Mali and Malta
- Net average daily production of 420 bopd in the first half of 2011
2011 H1 Corporate Highlights
- Strong balance sheet with cash of approximately $468 million, excluding $405 million related to the tax dispute
- Share buy back programme commenced in April 2011 and to date 28,556,281 Ordinary Shares have been bought back and held in treasury
- 12.46% of PetroFrontier Corp. acquired for investment purposes
- Arbitration proceedings have commenced in London against the Government of the Republic of Uganda (the "Ugandan Government") to resolve the tax dispute
- Implemented internal systems for managing requirements of the UK Bribery Act which became law in July 2011
Outlook
- Multiple reservoir intervals to be tested and evaluated in the Miran West-3 well during the second half of 2011 as the well is drilled to a target depth of c.4,400 metres
- Exploration drilling on the Miran East structure planned to commence in Q1 2012
- Final processing of 3D seismic data on the Miran Field is scheduled to be completed in the fourth quarter of 2011
- Work programmes in Tanzania, Mali and Malta continuing
- Production from the Zapadno Chumpasskoye Field, in Russia, expected to continue to increase
- Active assessment of new acquisitions and opportunities continues