
Matra Petroleum AB: Third quarter and nine months ended 30 September 2017
Nine months ended 30 September 2017 (Nine months ended 30 September 2016)
Dear Shareholders,
In the third quarter 2017, Matra's operating and financial performance continued to improve.
In 2017, 10 oil and gas wells have been drilled and successfully put on production. Approximately 75 old wells have been shut in. The performance of new wells is continuously improving as we keep improving drilling and completion techniques. Four of the new wells were completed and put on production in the third quarter, contributing to production increasing 7% quarter on quarter. For the nine month period, oil and gas production increased 24%.Driven by higher production and improved oil and gas prices, significant revenue growth was recorded compared to the third quarter and nine month period last year. Quarter on quarter, realized gas prices increased by 24% while realized oil prices were essentially flat. Third quarter revenues were negatively affected by a non-cash revaluation of hedging positions. After the end of the quarter, oil and gas prices have further improved, which supports revenues.
Further efficiency improvements were achieved in the third quarter as Matra continued to rationalize production and costs. Production costs per boe decreased by 19% quarter on quarter and came down to USD 15.91 per boe.Increased revenues, net of revaluation of hedging positions, and cost efficiencies resulted in improvements in EBITDA, operating cash flow (before changes in working capital) and net result quarter on quarter and year on year.
In the third quarter and first nine months 2017, investments in oil and gas properties increased as a result of increased drilling activity. Net cash decreased as these investments were financed by equity issues early in the year and cash.Supported by encouraging drilling results and higher oil and gas prices, we are in the process of updating Matra's reserves and development plan. We are upgrading the expected returns from investments in new wells and are in the process of securing resources for an expanded capital expenditures program in 2018. In short, our ambition is to drill more wells in the coming year to further improve financial performance by adding profitable oil and gas production in line with the long term target of 6,000 boe per day. Beyond that, we have identified additional opportunities to further expand Matra's production and reserve base through M & A.
23 November 2017
Maxim Barskiy
Chief Executive Officer
Maxim Barskiy, CEO, Matra Petroleum AB (publ)
Phone number: +46 8 611 49 95
E-mail:
Investor Relations
Email:
Website: www.matrapetroleum.com
Matra Petroleum AB (publ) is a Swedish independent oil and gas exploration and production company operating in the United States, where the company owns and operates 136 leases, covering an area of 38,800 net acres in the Panhandle region in Texas. Matra's reserves amount to 22.9 million barrels of oil equivalent. Matra Petroleum 's shares are traded on NASDAQ First North in Sweden under the symbol MATRA. Mangold Fondkommission AB is Certified Adviser (www.mangold.se).
Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 115 22 StockholmTelephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: Attachments:

Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research

- B2PRIME Announces B2MEET - Private Forums For Top-Tier Market Insights
- PU Prime X AFA Launch Official Football Giveaway
- Klein Funding And Bybit Partner To Launch A New Era Of Crypto Prop Trading
- SBI VEN CAPITAL INVESTS €1 MILLION IN COLOSSUS DIGITAL's BRIDGE ROUND
- Visby Management Reiterates Superior Offer To LCL Resources
- Nibiru Launches”Block Party” Aura Program To Reward Real Defi Activity
Comments
No comment