Q1 2009 Presentation – Rocksource steps up exploration following successful license awards
Through the recent successes in the last three license rounds on Norwegian and UK Continental shelves Rocksource has added eight new, exciting licenses to its portfolio. With six confirmed positive CSEM anomalies and with two more licenses currently undergoing final analysis, Rocksource has established a license portfolio of low risk, high value prospects which could be drilled within 2-3 years. Establishing this drill queue represents a major milestone for the company where focus will shift from gathering the most exiting acreage to actually drilling them. The presentation published in conjunction with this report shows the upside inherent in this portfolio. The estimate for net risked (mean) resources for the 8 CSEM positive prospects represents an upside of 18 NOK/share.
First quarter operating income was NOK 29.1 million, a reduction of 49% compared to previous quarter of NOK 57.4 million and NOK 59.9 million same quarter 2008, a reduction due to lower production and a substantial drop in gas prices in the US. Compared to an average gas price of USD 12.3 per mcf in the record quarter Q2 2008 and USD 6.7 per mcf in previous quarter, the gas price was down to USD 4.6 per mcf in Q1 2009, representing a reduction of 63%.
Although 2009 will provide a challenging trading environment for the oil and gas industry, Rocksource has already seen that it will also present a number of opportunities to grow the company. The company believe more assets will become available in the US, more exploration assets will be available worldwide, and that there will be an even stronger demand for ”smarter” exploration. All these factors reinforce Rocksource ability to continue to grow and to realise the full potential of the portfolio.
As CSEM positive prospects are added to the portfolio the company is now preparing to enter into a new stage in the development of the company. With the awards in the 20th round Rocksource will now move into a phase where drilling of our low risk, high value prospects will be a major activity in the exploration efforts. Leveraging on the technical capabilities Rocksource will prove more barrels faster and at a lower cost proving that the quality, not the quantity, of licenses in a portfolio will be the key to Rock source’s exploration success.
Please find the Q1 presentation here: http://www.rocksource.com/presentations/category157.html
The corresponding press release can be found here:
Oslo, 20.5.2009
Rocksource ASA
Trygve Pedersen
CEO
+47 90 09 77 41
Contact Information
Address:
Thormøhlensgate 53 D
Postboks 994 Sentrum
N-5808 Bergen
Norway
| Phone: | +47 05369 |
| From abroad: | +47 21 49 32 69 |
| Fax: | +47 55 36 87 98 |
Per Anders Muri
VP Corporate Communications
Phone: +47 91 11 61 21
per.anders.muri@rocksource.com