M Vest Energy AS has during this year become a fully integrated E&P company with oil and gas production, exploration activity, infrastructure ownership and potential development projects.

In March 2022 the acquisition of working interests in Draugen (7,56%), Brage (4,4424%) and Ivar Aasen (0,8%) was completed.

In the 4th quarter M Vest Energy had revenues of 136 MNOK from its licenses.

EBITDA for the quarter was 65 MNOK, and 310 MNOK for the full year.

In December M Vest Energy successfully refinanced existing debt and issued a 400 MNOK bond maturing in December 2025.

Financial review

Total income in the fourth quarter 2022 amounted to MNOK 135.7, (16.3 in 2021). Operating profit for the period was MNOK 21.5 (-5.5 MNOK in 2021), where the improvement from 2021 was due to the contribution from acquired assets. The total operating expenses amounted to MNOK 114.2 (21.7 MNOK in 2021). The increase is due to the acquisition of producing assets.

Net financial items amounted to MNOK -35.3 (-6.1 MNOK in 2021), where costs of 22.4 MNOK is a noncash item related to accretion expenses of asset retirement obligations on the acquired assets.

Profit/loss (-) before income tax was MNOK -13.8 (-11.6 in 2021). Tax income/expense (+) amounted to MNOK
-23.0 (-4.3 in 2021).

Net profit/loss (-) was MNOK 9.2 (-7.2 in 2021).

Total assets at period-end amounted to MNOK 1 232.4 (300.2 in 2021). The main reason for the increase is the acquisition of producing assets from Neptune.

M Vest Energy has recognised tax refund of MNOK 0.0 (17.8 in 2021).

The total equity was 73.6 MNOK, up from -7.1 MNOK in Q4 2021. The positive change is driven by profits from producing assets.

The interest-bearing debt was MNOK 453.5 in Q4 2022, compared to 294.1 MNOK in 2021. The net increase in interest-bearing debt is mainly due to the financing of the acquisition of producing assets.

The company’s cash flow from operating activities was MNOK 41.4 (37.7 in 2021). Cash flow from investing activities was NOK -37.6 (-2.1 in 2021).

Net cash flow from financing activities was MNOK -47.3 (-21.4 in 2021).

Cash and cash equivalents at the beginning of the period was MNOK 86.4 (9.5 in 2021). At balance sheet date, cash and cash equivalents amounted to MNOK 43.0 (23.7 in 2021), giving a net decrease of MNOK 43.4 (increase of 14.2 in 2021.) .

Operational review

Draugen (partner 7.56%)
Net production for the fourth quarter was 1 151 boed. Production availability was 92%.

Reliability and performance increased in the fourth quarter due to successful scale squeeze in Q3 and increased subsea pump pressure.

Exploration/Appraisal wells for Springmus and Garn West South was sanctioned in November. The wells are planned to be drilled 2023 or 2024.

The Hasselmus development project is moving forward as planned with startup of gas export in Q4 2023. The Power from Shore project was sanctioned in December and the plan for development and operations (PDO) was submitted to the Authorities.

Brage (partner 4.4424 %)
Net production in the fourth quarter was 276 boed. Production availability was 95%.

The planned turnaround was completed in September and impacted the production also in October. Drilling of a new producer in the Talisker structure in the Northern part of the Brage field commenced in the quarter and will be completed January. A geo-pilot section drilled as part of the producer proved hydrocarbons in Cook and Brent. The next well to be drilled on Brage is a gas producer in Sognefjord.

Ivar Aasen (partner 0.8 %)
Net production in the fourth quarter was 297 boed. Production availability was 98%.

An Increased Oil Recovery (IOR) drilling campaign was completed. Three new infill wells were drilled, and the first well was put on production late December. This well is currently the best producer at the field. The Power from shore project started up in December as planned.

KeyFacts Energy: M Vest Energy Norway country profile