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21 Mar 2019 | 07:58

Energean Oil & Gas profits surge as revenues jumps 45%; trims 2019 output guidance

Energean Oil & Gas pre-tax profits more than trebled as revenue jumped and costs were slashed, but the energy company narrowed its 2019 production guidance amid delays experienced by the Epsilon extended reach well.

For 2019, Energean said expected to deliver production of between 5,000 and 5,500 barrels of oil per day.

Delays at Epsilon had been encountered because of issues with 'downhole equipment and tightness of the supply chain as industry activity picks up,' the company said. For the year ended 31 December 2018, profit before tax rose to $58.3m from $25.4m a year earlier and sales revenue jumped 45.4%. The jump in profits and revenues comes as production was jumped 45% year over year to 4,053 barrels of oil per day, while costs were reduced by 29% per barrel. It reported increased 2P reserves to 347m barrels with 2C resources of 58m barrels, a combined 35% year-on-year increase. The oil and gas company also secured its future revenues after inking a contract with TechnipFMC. 'We secured $13 billion of future revenues by signing 12 Gas Sales Agreements to deliver a total volume of 4.6 bcma, firmly underpinning the project's economics, signed a lump-sum, turnkey EPCIC contract with TechnipFMC, simplified project management, reduced our financial risk exposure, and secured funding for the project through the combination of a $1.3 billion project finance facility and the funds raised through our IPO on the LSE in March 2018,' the company said. The company also confirmed it was target to achieve first gas from Karish and Tanin in first quarter of 2021. 'We remain focused on delivering the project and our medium-term strategy is to secure both the additional resource and offtake for the remaining spare capacity in our 8 bcma FPSO, which we believe will create significant further value for all of our stakeholders. '

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