Seacrest Petroleo today reported second quarter 2024 unaudited results. 

Jose Cotello, CEO, Seacrest Petroleo Bermuda Limited, commented:
“A new era has begun at Seacrest Petroleo. We have achieved our first quarter of positive earnings. Our 300-well infill drilling programme, the largest onshore Brazil, is now progressing well, with eight new wells drilled since June. We are delighted by the performance we have demonstrated, with drilling time to target depth consistently coming in below plan assumptions. Production levels at our infill wells have also been encouraging, reaffirming the potential of our assets. We have tremendous opportunities ahead of us, and in support of these we are strengthening our financial foundations. Management, major investors and creditors have all demonstrated confidence in our business plan. We have agreed amendments with lenders and bondholders to waive the leverage ratio covenants for the second quarter and, subject to a USD 20 million cash injection from our convertible bond issue, the third quarter 2024. We have started the process of refinancing our existing debt to establish a capital structure consistent with us now having entered a positive earnings phase. We are just getting started.”

Quarterly earnings

• First positive quarterly earnings per share of USD 0.0153
• Revenues of USD 47.2 million, a 3% increase from the first quarter, including the impact of realised hedging loss of USD 3.1 million
• EBITDA of USD 9.5 million, up from USD 7.9 million in the first quarter, including the impact of realised hedging loss of USD 3.1 million
• Positive Cash flow from operations of USD 0.2 million, up USD 56.0 million from the first quarter which included a USD 35.3 million payment to Petrobras
• Realized oil price of USD 74.7/bbl, including the impact of realised hedge losses
• Cash position of USD 24.8 million

Operational performance

Total production 7 959 boepd in the quarter, down 5% sequentially. During the quarter, the Company experienced some degraded light-oil production facilities performance; these have been rectified, with the quarter ending production at ~8 400 boepd
Production cost per boe USD 26.2 for quarter, up 10% sequentially driven by a drop in volumes produced and cost increases.

Strategic priorities

• Excellent drilling performance, with eight wells drilled with new rig, and drilling time averaging below plan
• Encouraging production rates from infill wells: two wells drilled, with first batch producing at 15% above previously drilled Petrobras wells at same field
• Petrobras work on north subsea pipeline at Terminal Norte Capixaba ongoing, with certification expected in October

Reinforcing financial strength

• In advanced stage of securing new financing via convertible bond offering
• Agreed amendments with lenders and bondholders to waive leverage ratio covenants for Q2 and, subject to USD 20m cash injection from convertible bond issuance, Q3 2024
• Debt refinancing process started

KeyFacts Energy: Seacrest Brazil country profile