Operating costs of Greenfields Petroleum at Azerbaijan’s Bahar-Gum Deniz down
Baku, Azerbaijan, May 30
By Leman Zeynalova – Trend:
Operating costs the US Greenfields Petroleum at Azerbaijan’s Bahar-Gum Deniz block were $5.4 million for the first quarter of 2019, a 30 percent decrease relative to the fourth quarter of 2018 spending of $7.7 million, Trend reports citing the US Greenfields Petroleum Corporation, which is the operator of the Bahar-Gum Deniz block through its subsidiary Bahar Energy Limited (BEL).
“Operating costs in the fourth quarter of 2018 reflected the costs of capital workovers for two Bahar Gas Field wells charged to expense due to collapsed casing. The lower level of capital projects activity during the first quarter of 2019 also resulted in the expensing of operating costs which would otherwise be capitalized,” said the company.
The company’s capital expenditures were $0.6 million for the first quarter of 2019, a 33 percent decrease relative to $0.9 million in the fourth quarter of 2018.
Reportedly, capital expenditures during the first quarter of 2019 were also impacted by delays in crane vessel support for the movement of workover rigs.
After interest and depreciation expenses, the company realized a net loss of $3.6 million for the first quarter of 2019, which represents a loss per share (basic and diluted) of $0.20.
The company also realized a net loss of $2.6 million in the first quarter of 2018, with a loss per share (basic and diluted) of $0.14.
Greenfields Petroleum Corporation is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in Azerbaijan. Through its wholly owned subsidiary Bahar Energy Limited (BEL), the corporation owns an 80 percent interest in the Exploration, Rehabilitation, Development and Production Sharing Agreement (the “ERDPSA”) with the State Oil Company of Azerbaijan ("SOCAR") and its affiliate SOCAR Oil Affiliate (“SOA”) in respect of the offshore block known as Bahar Gum Deniz (the “Bahar Project”) which includes the Bahar Gas Field and the Gum Deniz Oil Field.
The Bahar Project is operated by BEOC, a wholly owned subsidiary of BEL, under the terms of a Joint Operating Agreement.
The Bahar Gas Field consists of 45 offshore platforms including a central processing and metering platform to gather the gas for onward transport through a three 12-inch pipelines to the shore-based gas and liquid handling facilities. The platforms, in most cases are built on 24 to 30 pilings each in an average water depth of about 16 metres.
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