Salinas' North San Ardo revenue, production on budget Unit Price: Bid: Ask:
15 Sep 2008 10:30:00
4 Views 0 comments
Sydney - Monday - September 15: (RWE Aust Business News) - Sales revenue from Salinas Energy's (SAE) North San Ardo oil field for August was $US2.7 million with sales volumes of 26,507 barrels.
Revenue and production were on or around budgeted levels.
Year to date sales for the eight months ending 31st August exceed $US15.8m.
The recent strengthening of the US dollar has significantly offset the fall in the oil price in Australian dollar terms.
Salinas is confident of achieving calendar year target revenue of $US25m but this is dependent on oil prices for the remainder of the year.
Oil production for the eight months ended 31st August was over 151,000 barrels and our forecast of 287,000 barrels in 2008 remains achievable with increased production from additional development drilling, which is scheduled to commence within the next 30 days.
The next program will include one horizontal production well and an additional water disposal well.
Further production drilling is planned for later in the year once the rig returns from commitments with another operator.
"Despite the recent fall in the US dollar oil price, the high margins we are achieving at NSA make the field very profitable," managing director John Begg said.
"The NSA field is a long term producing asset and we are very pleased with the levels we are achieving in plant efficiency, oil production and cash flow.
"The strong cash flows mean Salinas' other operations are fully funded and we continue to focus on increasing the scale of our business."
SAE Price at posting:
23.5¢ Sentiment: Hold Disclosure: Held
