CAMAC’s revenue affected by low production - CNBC Africa

CAMAC’s revenue affected by low production


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Oil refinery in Nigeria. PHOTO: CNBC International

For the year ended 31 December 2013, the independent oil and gas exploration company said that crude oil revenues dropped from 16.6 million US dollars in 2012 to 7.9 million US dollars in 2013 due to a natural decline in production, leading to lower sales volume.

[DATA CME:CAMAC Energy Incorporated] sold approximately 73,000 net barrels of oil at an average price of 107.85 US dollars per barrel, compared to 148,000 US dollars at 112.60 US dollars per barrel in 2012.

(WATCH VIDEO: Camac Energy lists on JSE)

During 2013, 2012 and 2011, the average gross daily production from CAMAC’s offshore Oyo Field in Nigeria was 2,233 barrels of oil per day (BOPD), 2,759 BOPD and 3,714 BOPD respectively.

Another factor affecting the group’s revenue is the significant volatility in global energy prices. A decline in oil and natural gas prices affects its operations and financial conditions.

Production costs for 2013 were 0.7 million US dollars, compared to expenses of 0.3 million US dollars in 2012. The group incurred exploration expenses of 5.5 million US dollars, including 2.1 million US dollars spent at corporate level for exploration activities, 2.5 million US dollars in Kenya, 0.6 million US dollars and Gambia and 0.3 million US dollars in Nigeria.

(READ MORE: CAMAC Energy reports muted Q1 results)

Depreciation, depletion and amortisation (DD&A) expenses however for 2013 were 4.5 million US dollars, compared to 10.8 million US dollars in 2012.

“The 2013 DD&A expenses decreased as compared to 2012 primarily due to both lower sales volumes and lower depletion rates,” the company said.

Headline earnings per share rose from 0.02 US cents in 2012, to 0.04 US cents in 2013.

No cash dividend was declared for the period. 

In February 2014, CAMAC closed a 270 million US dollar private equity investment, which resulted in them acquiring 100 per cent ownership of Oil Mining Leases (OML) 120 and 121, of which Oyo Field is within.

(READ MORE: CAMAC continues frontier exploration in Gambia)

“We are very excited about the future of CAMAC Energy.  In addition to the significant development wells coming online soon, we will also be drilling our first exploration well in the Miocene formation in these blocks,” Christopher Heath, Director of CAMAC Energy told

“Our prospects are very significant in size, and this exploration drilling will enable us to discover a new oil field much larger than the currently-producing Oyo field.  Once a new oil field discovery is made, we would then create a development plan and develop the new oil field.”