Fourth quarter ended 31 December 2017 (Fourth quarter ended 31 December 2016)
Twelve months ended 31 December 2017 (Twelve months ended 31 December 2016)
Fourth quarter 2017
Fourth quarter 2016
Twelve months 2017
Twelve months 2016
Gross crude oil production, bbl
Gross gas and natural liquids production, mcf
Net crude oil production, bbl
Net gas and natural liquids production, mcf
Average selling price oil, USD/bbl
Average selling price gas USD/mcf
Operating result, TUSD
Result for the period, TUSD
Earnings per share, USD
We can now summarize Matra Petroleum AB's first financial year following the listing on Nasdaq First North in Stockholm last spring.
In 2017, Matra made meaningful progress and recorded significant growth and financial improvements:
In, 2017 performance was driven by successful drilling, production optimization and continuous cost and efficiency improvements. Revenues, EBITDA and cash flow were also supported by improved oil and gas prices. Increased capital expenditures, resulting from higher drilling activity were primarily funded by equity issues early in the year and working capital sources, resulting in a net cash decrease.
10 new production wells and 1 salt water disposal well were successfully drilled and completed and are outperforming expectations as drilling and completion techniques keep improving. The results from the new wells have been incorporated into Matra's updated development plan and independent reserve report to reflect higher expected financial returns from new wells to be drilled going forward. Matra has identified more than 400 locations for drilling new wells to add production towards the long term production target of 6,000 boe per day.
In the fourth quarter 2017, oil and gas production increased compared to same quarter last year but was lower than in the preceding quarter, primarily due to unusually low temperatures in northern Texas in December that affected flow lines and compressors. Higher realized oil and gas prices contributed to revenues increasing by 16% compared to the fourth quarter last year while remaining at the same level as revenues in the third quarter 2017.
Quarterly EBITDA further improved from the third quarter 2017 and the fourth quarter 2016. Net income for the quarter was negatively affected by an unrealised loss of TUSD 453 on hedge positions, based on higher yearend oil and gas prices not yet reflected in oil and gas sales. Hedge positions were related to future production for which actual price realizations will be recorded in 2018.
Higher oil and gas prices support revenue, cash flow and earnings going into 2018. Matra's asset base offers significant development opportunities and we remain committed further optimize drilling and production. Our objective is to execute an extensive workover program and launch this years' drilling program in the second quarter to provide for further growth and financial improvements.
21 February 2018
Chief Executive Officer
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