PRELIMINARY  RESULT AS PER 3RD  QUARTER  2010

 Summary of main events

  • Net result after tax for the first nine months of 2010                   : USD    2.1 million

         For the 3rd quarter 2010                                                           : USD  -6.6 million

  • Revenue and operating profit before depreciation for the first nine months of 2010 was USD 56 million and USD 20.8 million.
  • Operating result before depreciation of Venture Drilling AS (50 per cent owned) for the first nine months of 2010 was USD 81.9 million. Net Result after tax USD 54.5 million. From end April Deep Venture is stacked in Ghana awaiting outcome of the result of the bareboat termination dispute with the Russian owner.
  • Book Equity per 30.09.2010 USD 1.79 per share.
  • A team of core employees has been hired for the Corporate Management, Drilling and Well Division, and Oilfield Service Division.

 

Financial information

Profit and loss for the first nine months of 2010

 Total revenue for the first nine months 2010 was USD 56.0 million all of which came from Petrolia Services (100 per cent owned subsidiary). For the first nine months of 2009, total revenues equaled USD 48.3 million.

 

Operating profit before depreciation for the first nine months of 2010 was USD 20.8 million compared to USD 22.6 million for the first nine months of 2009.

 Total operating expenses equaled USD 35.2 million in the first nine months of 2010.

Operating loss for the first nine months of 2010 equaled USD 8.6 million including USD 29.4 million in depreciation of equipment mainly related to Petrolia Services. Operating loss for the first nine months of 2009 equaled USD 6.6 million, including USD 29.2 million in depreciations.

The net result after-tax for the first nine months of 2010 was USD 2.1 million.

Total revenues were USD 19.0 million for the third quarter 2010.

Operating profit before depreciation was USD 8.8 million for the third quarter 2010 compared to USD 5.8 million in 2009.

 

Total operating expenses equaled USD 10.2 million for the third quarter 2010.

Operating loss equaled USD 0.1 million for the third quarter 2010, including USD 9.0 million in depreciation of equipment mainly related to Petrolia Services. Operating loss equaled USD 6.9 million for the third quarter 2009, including USD 12.7 million of depreciations.

 The net result after-tax was USD - 6.6 million for the third quarter 2010.

  

Attachment : Preliminary Report for 3rd  Quarter 2010. 

 

The preliminary report for 3rd quarter 2010 will only be presented as a stock exchange notice.

 

For further information please contact : Ørnulf Samdal, CEO Petrolia Drilling ASA,

e-mail: samdal@petrolia.no

 

 

Bergen/Oslo, 25 December 2010

Board of Directors

Petrolia Drilling ASA

This information is subject of the disclosure requirements acc. to § 5-12 vphl (Norwegian Securities Trading Act)

About Us

Oil & Gas division: Petrolia Norway AS maximizes field potential through innovative exploration and increased oil recovery technology from mature areas on the Norwegian Continental Shelf, leveraging on the extensive industry experience of the Petrolia Norway team. Petrolia Norway AS is qualified as a licensee for the Norwegian Continental Shelf. The company currently holds 50 per cent of the PL674 license, 30 per cent of PL 506S, PL 506BS, PL 506CS and PL 506DS and 10 per cent of PL 628. The company is wholly owned by Petrolia SE and has offices in Bergen, Stavanger and Oslo. Through Petroresources Ltd (47.24 per cent owned) the division has economic interests in licenses in Africa and the Middle East. OilService division: The company´s involvement in oilfield services began through the acquisition of Independent Oil Tools AS in 2007. Total investment in equipment has subsequently exceeded USD 200 million. The investments were largely financed by Petrolia and in addition financial leases of more than USD 40 million were obtained. The division has developed into a leading international equipment rental group with a global presence. This division owns drill pipes, test strings & tubing, handling & auxiliary tools and other equipment. In addition, the division provides associated services like tubular running services through Premium Casing Services Pty Ltd in Australia and New Zealand. The OilService division benefits from an excellent track record of availability, technical compliance, experience and performance. It has a well-established, large, international client base, including a portfolio of contracts in place with numerous major oil service companies, oil companies and drilling contractors. Drilling and Well Technology division: In 2012, a subsidiary of Petrolia SE acquired two land rigs which are presently located in Romania. The drilling rig has completed 18 wells since it commenced a one and a half year contract in Romania. The contract is with a large oil company and is to be completed by the end of this year. The rig has proven to be efficient in line with expectations for the drilling activities, as well as fast and efficient mobilisation and demobilisation between wells. The rig is currently being marketed to a certain number of potential customers within Europe and other commercially attractive areas. The work-over land rig is being marketed and will be mobilised once a LOI is signed. Both rigs are managed by TM Drill, a Romanian land drilling contractor, in which Petrolia has a 19.66% interest. The division has started to build in-house competence within land drilling activities and has employed a number of skilled employees to be able to expand within this segment.

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