Klart bra och mycket som ser ut att gå i rätt riktning. De har fått till stånd ett kontrakt med SPDC (Shell), som maximerar pipeline förluster till 8%, det är klart bättre än historiskt runt 20%. De har fått tillbaka över 2,3 miljoner fat olja, på 365 dagar motsvarar det 6300 fat/dag.
MPN är inte nöjda med detta utan är i slutfas av att sätta igång två alternativa rutter, en till central orten Warri med eget raff och en till bolaget Pan Oceans utskepping längre norrut längs kusten. Med dessa nya rutter kommer man ifrån SPDC beroendet och deras 8%.
Presentation – http://www.mpnigeria.com/document/download/144
Mina anteckningar från conference call -
Listened to the CC pretty hopeless to understand anything with a translator. Lots of interesting stuff.
SPDC 8 % ”fee” agreed on, a lot better than 20. The deficit is now repaid. Will end using SPDC as a transporter, when and why and how much volume I really didn’t understand, sounded like everything. A 8 km pipeline is built to the Warri refinery, that one is completed and a pipeline to Pan Ocean is also being built, 20 km left to lay, so two new routes for them and that will end the 8% SPDC fee. These new routes are also dependent of when SEPLATS own water handling treatment facility are completed. Did not get the timing on that either, but let’s say its Nigeria timing to be sure.
Producing 60000 b/d now + gas. 3 rigs running maybe a 4th later this year. + 10 wells + workovers. New fields in production – Okporhuru (now), Okoporo tied in during 2013.
Gas operations independent from oil, gas is a byproduct, opex already taken in oil business. New contract 1,20 US/mcf => will rise to 2 and later 2,5 +. Gas royalties (6%) and taxes are low. By 2015 they have a goal that 33% of sales and +33% profits will come from gas. Very good profitability, capex 150 musd to 2015 includes new hook ups and facilities. So gas gradually more and more important.
They are looking for different acquisitions, (1) smaller neighboring fields (2) larger Conoco/Shell type of things. (3) outside Nigeria
SEPLAT is in the process of a listing, will be in London and Nigeria. Best case summer normal case fall. Needs to supplement the board and few other things. They still don’t think proper value of the Nigerian operations is reached, way to low and need to spread the institutional holdings.
One complication is a the technical transfer of MPN into SEPLAT that seemed impossible at this stage, think it is due to the rules of foreign ownership in Nigerian operations and the possibility of tax deductions. (Could also be the reason for delays in MMT reorganization) . So the MPN holding company will remain and live its own life on the side, no need to help SEPLAT with finances. MPN has at this stage 182 MEuros to play with.
MPN 3 euro 115 milj shares 182 milj euro cash 48 milj euro net income. Ev 163 milj euro => P/E 3,4