BAKU, Azerbaijan, Dec.2
By Leman Zeynalova – Trend:
The entitlement share of sales volumes (Sales Volumes) of the US Greenfields Corporation from Azerbaijan’s Bahar-Gum Deniz block resulted in revenue of $7.38 million in Q3/19 and $21.81 million year-to-date (YTD) 2019, a decrease of 8 percent relative to Q3/18 and 10 percent relative to YTD 2018, primarily due to a decrease in oil prices, Trend reports citing Greenfields Petroleum Corporation, engaged in the block’s development.
“Sales Volumes averaged 610 barrels per day for crude oil and 17,080 mcf/d (thousand cubic feet per day) for natural gas or 3,456 boe/d in Q3/19 and 607 bbl/d, 16,294 mcf/d or 3,323 boe/d YTD 2019. As compared to Q3/18, Sales Volumes increased 9 percent for crude oil, decreased 4 percent for natural gas and 2 percent for boe/d, while YTD 2019 Sales Volumes in comparison to YTD 2018, decreased 5 percent for crude oil, 4 percent for natural gas and 4 percent for boe/d,” reads a report from the company.
Realized oil price averaged $55.12/bbl for Q3/19 and $58.30/bbl YTD 2019, a decrease of 21 percent and 12 percent in comparison to an average price of $69.65/bbl and $66.43/bbl in Q3/18 and YTD 2018, respectively. The price of natural gas has been fixed at $2.69/mcf since April 1, 2017.
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.
The Gum Deniz Oil Field is located south of the Absheron peninsula, 21 km south of Baku, between Gum Island and the Bahar Gas Field. The Gum Deniz Oil Field extends from onshore Gum Island, which is 2.5 km from the mainland to the south in the Caspian Sea. The Gum Deniz Oil Field is found along the Fatmai–Gum Adasi anticlinal trend which includes the Bahar and Shakh Deniz structures. Oil in the Gum Deniz Oil Field is trapped in a north-south trending structure that is approximately 16 kilometres in length and 3 kilometres in width. The Gum Deniz Oil Field is structurally up-dip from the Bahar Gas Field.
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