29th Jan 2015 08:36
LONDON (Alliance News) - SOCO International PLC on Thursday said its 2014 production came in line with guidance, but said its forecast for 2015 has been cut year-on-year owing to the weak oil price environment.
The FTSE 250-listed oil and gas company said its production for 2014 was 13,600 barrels of oil equivalent per day, in line with its guidance of between 13,300 and 13,800 barrels. But, due to the drop in the oil price in recent months, the group said its 2015 production guidance has been set at 10,500 to 12,000 barrels.
The cut in guidance also reflects the reduced scope of the company's drilling programme at the Te Giac Trang field in Vietnam and a conservative flow-rate estimate for the H5 field at the project. For the year so far, to January 27, the company's production is running at 12,900 barrels of oil equivalent per day.
Total oil and gas revenue for the company in 2014 totalled USD446 million, with an average realised oil price of USD103 per barrel for the year, a USD4 premium to Brent. A lower premium is expected in 2015 due to the lower crude oil price.
SOCO said the drilling programme for Te Giac Trang is on schedule, with eight wells drilled during 2014 and a further five to six expected to be completed by the end of the second quarter of 2015. It said the development of the H5 field is progressing well and is ahead of schedule for the first oil to be produced by September-October this year.
The company said its capital expenditure for 2014 is set to be at the low end of guidance at USD161 million. It expects its 2015 firm capital spending budget to be around USD90 million, with USD70 million from Vietnam and around USD20 million for Africa.
SOCO shares were down 3.9% to 269.00 pence on Thursday morning, one of the worst performers in the FTSE 250 in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Soco International