Good day, everyone, and welcome to this Q3 results presentation with Petronor, E&P. Today's presenters are CEO, Knut Serval Chief of Business Development, Gerd Ludwigsen and CTO, Claus Fremandahl. We also have Chairman, Agers Allomous and also Head of Exploration, Michael Berrett with us remotely on Teams. I urge you all to send me questions along the presentation so that we can wrap up with a Q and A session towards the end, which I will moderate. And with that, I think we're ready to leave the word to Ias.
Good morning, everyone. Welcome to the Q3 year to date 2020 results for Petronor A&P Limited. My name is Eyas Alfa Moos. I'm the Chairman of the company, and I'm joined today by the team Knut Sowold's CEO, Gerhard Ludwigsen, our Board Member and Business Development Manager, Klaus Vermandal, our Technical Director, Michael Barrett, Exploration Director and Chris Butler, our Financial Controller. Together, we will take you through this presentation, and we should have some time for question and answer session at the end.
Just as a reminder, this presentation contains some of the information about the company, its subsidiaries and their activities. This information, does not prepare to be complete or comprehensive and does not summarize all information that an investor should consider when making an investment decision. It should be read in conjunction with the company's other periodic and continuous disclosure announcements lodged with the Oslo Access, which are available on their website at www. Oslobors. No.
I encourage you all to read the rest of the disclaimer, which is available on our website before making any investment decision. Next slide, please. So, rough year for everyone, primarily in our sector with the depressed oil prices. However, despite all of that, our team has shown quite the discipline to maintain some healthy results and strong performance. Our producing asset in Congo continues to show some sustainable growth despite the fact that the infill drilling program has been delayed due to the pandemic.
This quarter as well for those of you following, we have reinstated our license in the Gambia, and we will go into that more in detail towards the in the presentation. And less than 2 weeks ago, we've announced the acquisition of the Swiss Capitrolium assets in Guinea Bissau. The financials, very strong EBITDA, very strong discipline by the management team and we continue to show some focus on our ESG, primarily on our governance. This quarter, we have registered with the extractive industries transparency initiative, which is the global standard for the good governance of the oil, gas and mineral resources, where they function in several of the jurisdiction that we are in today. Next slide, please.
For an overview, Petronor is a full site portfolio in several jurisdiction. We have production asset in the Republic of Congo, Congo, Brazil. We have a redevelopment asset in Nigeria, and we have a very strong exploration portfolio in 3 different jurisdiction, Senegal, the Gambia, and Guinea, Pissau. We have an average production of around 26 50 barrels per day, and the management has committed to increase that by ten folds over the next 3 years. We have a very healthy pipeline with very strong ambition of growth in Sub Saharan Africa.
The management team is very experienced with a very supportive board of directors and very supportive shareholder base with Petromal, which is a subsidiary of National Holding in Abu Dhabi, is the single largest shareholder with more than 38%. Updates for the quarter, gross production in our asset in Congo, close to 23,000 barrels. I've mentioned the Gambia asset that we have reinstated, and Michael will go into that in detail in his review of our exploration portfolio. Senegal, for those of you aware of the legacy arbitration that we have with the government. We have a very healthy dialogue with the government today.
Unfortunately, things have been delayed by the pandemic where we had suspended the arbitration 6 months ago. It expired last November last October where we would have hoped to have an amicable outcome. Unfortunately, again, because of the pandemic, things were delayed. And, together with the government of Senegal, we've agreed on a 3 month extension that would take us through the 1st week of February. Less than 2 weeks ago, we've acquired the Sinapa and Esperanza licenses from, Svinska Petroleum in Guinea, Bisau, and we have initiated a market maker coverage with SPA Bank, out of Norway.
Key metrics for the company, today, we have a 2P reserves of around 10,300,000 barrels. We have, as I mentioned before, 2,650 in daily production. And we have 26,000,000 barrels in 2C resources and in excess of 4,500,000,000 barrels in unrest perspectives. Next slide please. The financial highlights for Q3 and year to date 2020, again, despite the pressure in the oil prices that we have, which impacted our revenue compared to same time last year.
Nonetheless, with a very strong discipline from the management, we've maintained a very positive EBITDA year to date. The 30 year license in the Gambia was reinstated and signed on what we consider favorable terms for both the people of the Gambia and the shareholders of Petronor. This last quarter, we've secured a 3 $900,000 loan facility from a related party, Semero, which is owned by Nor Energy, under terms that are equivalent to other financial settlements that we have from external sources. The q3 2020 results in in in from a high level and we can go into that in detail later into the presentation. We have $30,000,000 in revenue.
We have an EBITDA of around 10.6 and the net profit of 2.9 1,000,000 revenue, 1,000,000 net profit $2,900,000 The 9 months year to date as of September 30th, we have 50.7 percent compared to 76 percent from last year. And again, this is due to the low oil prices. We had an EBITDA of 24,300,000 and a net profit of $7,900,000 Financial position at the end of September, we have $18,000,000 in cash and bank balances. We have interest bearing debt of around 18.9 $1,000,000 of those 2.5 as current and 16,400,000 in noncurrent debt. We have a positive working capital of $20,700,000 Oil.
I mentioned that PNGF continued to deliver despite the delay in the infill drilling program. We have lifted 320,000 barrels compared to 296,000 barrels last year. We have an average selling price, which is I believe is healthy for the year. We are in of $43.6 per barrel compared, of course, to $62 per barrel last year. I'll leave you with Claus to go into more detail on our technical and producing assets in Congo, Brazil.
Claus, it's yours in Oslo.
Thank you, Elias, and good morning, everyone. I start out with a picture of the offshore shelf in Congo, Brasoville, indicating a well established region, producing about 360,000 barrels per day with big actors such as E and I, Total, S&PC, LUKOIL, Chevron and Perenco. Next page, please. This shows a production profile from AGR from our Competent Persons report of last year. A couple of comments to that is that part of the light blue 2C production has already been decided, I.
E, committed into 2P. On 2020 production is a little bit down from the indicated production due to delayed infill drilling. But we do expect that further increases to the 2C will be present on the next revision. We're producing from 7 steel jackets and 62 active wells and the number hopefully keeps on increasing as we deal with the work of our program that goes on in PNGF Sud. Next page, please.
And this show shows a little bit of the fantastic journey that we've been part of in the past 4 years, Where you see that production has increased from less than 15,000 barrels a day to more or slightly less than 23,000 barrels a day at very little CapEx investment. We have estimated that a total of 44 $1,000,000 has been spent on workovers and debottlenecking and studies in that period, leading up to the production increase. And just as a calculation on that, that is less than $1 per barrel or $0.80 actually to be exact for that reserves increase. Next page, please. This shows the OpEx in the same period, where two things I want to point out.
First of all is that the operator Perenko has very good budget discipline for which we're happy in that the budget the actuals usually comes in below the budgets. But also we have a downward trend and we are currently looking at for 2020 an OpEx per barrel of around $11 Next page, please. This shows the production profile on a daily basis for 2020, indicating a production of almost 23,000 barrels a day, which is net to Petronor, 2,400 barrels and up 4% from last year's production, with a high both facility regularity and well uptime. And just one thing I want to point out with the daily production plot, indicates that you see very little daily production upsets, very stable production from the processes on the 7 steel structures that we have present in PNGF Sud. Next page, please.
This shows a little bit of our upcoming infill drilling program on previously announced Littanci and Cendo. But now we are adding also as a part of next year's budget, the Cebelli infill drilling program. The Littanci infill drilling program consists of 4 wells in total, 2 producers, 2 injectors and has a little bit more complex wells than the Cendou and Cebelli. In that it's horizontal wells penetrating several fault blocks. Cendou, we have 6 or 7 wells infill wells planned in the first phase.
But the welded platform that we are installing actually has 14 slots in it, not 12 as it says here. And the Cebelli in field drilling program, we will announce more news on next time. But we hope that on the bottom right picture, we can start the infill drilling program, which was scheduled to start Q4 this year. But this year, we've concentrated on getting the infrastructure up and ready. The next picture again shows just an overview of BIS, nothing new there, but that comes after the infill drilling on the other structures.
And with that, I leave it to our Exploration Director, Michael Barrett in London.
Thank you. Next slide please. I'm going to talk you through the Petronor exploration portfolio in the exploration hotspot of the MS GBC Basin. MSGBC extends from Mauritania in the north to Guinea Conakry in the south. Highlighted in yellow on the map on the right, you can see the A four license in the Gambia, where Petronor hold 90% equity and the government the remaining 10%.
And then to the south, the previously mentioned recent purchase of the Senappa and the Esperanza, 2 licenses in Guinea Bissau from Svenska. So really exciting period coming up with a lot of activity. Why is it a hotspot? Well, the recent success of the major gas projects in the north from Kosmos and BP and the upcoming development of that gas. And then most importantly, the discovery of the Sangamo field marked on the map there with the brown triangle.
This is now operated by Woodside and I'll come on to go into the details of that a little more. The black dotted line is the edge of the carbonate platform and there are 5 wells upcoming. The first one I'll talk about is BP Gambia A1. That's marked with the yellow dot. Far Petronas in Gambia A2 marked with the green dot, CNO can impact to the south in the AGC marked by the pink dot and then Petronor, Far, Guinea Bissau Sinapa well marked by the orange dot.
And then finally, Petronor Gambia A-four well anticipate to drill and that's signified by the blue dot. Most of these wells are positioned towards the edge of the carbonate margin, the black dash line, and are chasing the same successful play type as proven by the Sangamo field. At the bottom, we can see a timeline with these 5 wells, which potentially could be drilled somewhat sequentially. These are very approximate timings, but there's an opportunity to share costs both in terms of logistics and reducing mob and demob costs. Next slide, please.
Here's a summary of the Sangamoire field now operated by Woodside. Development drilling of 23 wells starting from the middle of 2021 with the first well projected to be in middle of 2023, 3,600,000,000 barrels of STOIP. I believe the number for the block is now 5,000,000 barrels of STOIP. First phase production will produce about 100,000 barrels a day, approximately 500,000,000 barrels recoverable. The 2 diagrams on the right, starting with the one at the top, This illustrates both the what we call the shelf plays, which is the Sangamo field is a shelf field and then the basin play.
The Fan 1 well drilled by Cairn and Farr and ConocoPhillips was successful in the basin. And to the bottom of that, there's a cartoon showing the critical success ingredients here of the Albion sandstones deposited at the edge of the carbonate platform with an eastward tilt setting up the trap. And then in the basin, the same age sandstones deposited. Next slide, please. Just go into a little bit more detail on the Guinea Bissau 2 licenses, the Sarnappa license and then the Esperanza license that's comprised of Blocks 4A and 5A.
The water depths vary from 15 meters in the East to 1400 meters in the West. The licenses cover approximately 5,000 square kilometers. The equity position held by Petronor is 78.6%. Very significant prospect has been identified and well located chosen. You can see in the diagram in the bottom right.
This is called the Atumancheva prospect and has a P50 net prospective resource of 568,000,000 barrels from the PDC CPR report at the end of 2019 that was completed for Svenska. So Petronor, we hope to build on the excellent technical work done within the partnership of Swenska and Fahr and to carry on the momentum towards drilling in this block. Next one. Next, please. This is just to reiterate the similarity of the Sangamo field, the SNE field.
And the slide in the top can see seismic line going through the field. And to the bottom, we can see a seismic line running through the acreage in the Sangamo in the SINAPA license. The green line signifies the edge of the platform and you can see the similarity again of the 2 prospects. Next slide, please. On the Gambia A four block, you can see the image on the left, you can see the platform.
We're looking towards the south here and you can see the platform with sandstones, interpreted sandstones being deposited on the edge of the platform in yellow and orange. And then in the basin, in the red colors, we've got the younger Sononian sandstones in the canyons and beneath that we've got Albion sandstones. So again, we're seeing the same ingredients that have worked for the success at the Sangamo field. On the map on the right, you can see the Sangamo field to the north and then 30 kilometers to the south, you can see highlighted in the red outline the A four block. So again, we've got prospectivity on the platform, the La Mer prospect and also in the basin, rosewood and acacia prospects in the basin.
So very exciting prospectivity and on trend with the success further to the north, but we anticipate increased reservoir quality in the sandstones in the basin in the Gambia block because of a lower depth of burial there. With that, I'll end the summary and hand over.
Thank you, Mikael. We will then move on to Nigeria. As you all are aware, we signed an agreement with Panuru and YFP to acquire the share in the Archer field of Frolagos. The Archer field is a large gas condensate oil field, which is currently producing a few 1,000 barrels per day, where we are coming in as technical partner to the operator YFP and are going to redevelop the assets. As you see from the figure, the Archerfield is just also Lagos where you have 20,000,000 people with in need for energy.
The tieback of gas to shore will be a very solid contribution to the energy needs in that region. The development plan we have, it's comprised of bringing a new FPSO suitable for handling gas and condensate, extracting condensate offshore and then bringing the rich gas to shore, drilling 3 new wells to increase the production capacity and then onshore sell the gas into West African Gas Pipeline or into the gas grid locally or into gas to power. The process with DPR and the Ministry has been delayed due to COVID unfortunately, but we hope that we'll be able to pass the required formal approvals within the next few months. With that, in addition, in Nigeria, we also won a very exciting initiative, which is flare gas reduction. This is a program we've been working on for some time now and we hope to update you early next year, mid next year on the progress on this one.
Then back to Daniel and the company. So thank you very much for hosting us, Daniel.
Excellent. So we received quite some questions here. I think the first one is from me. You have a quite wide portfolio now with the recent addition the project in Nigeria as you recently or you just touched upon Knuts. And you also have the cornerstone asset in Congo.
And which of the assets in your opportunity set are you most excited about based on where we are today and the information today?
The portfolio. Congo is the base production and the base cash flow. It has a fantastic upside with the huge in place volumes. We are just as you see from the work plan so far, only scratched on the surface on what we can do of infill drilling. The 1st 4 years have only been workovers as Klaue said, dollars 1 per barrel in production cost added production costs.
So there's potential in Congo, I don't think I've seen yet because we haven't had the capacity just to do all the geo models. That is in making and we hope that in the next year by year, we will add positive surprises on this asset. Nigeria, which is the development project, it's a significant resource. It has a huge customer base next door. So it is in one way, it's a logical development.
It's of course, it has been like a hunt addressable or asset because of unfortunate timing and so on. So we really hope that when we now get the final approvals from the ministries that we can move on and really make this to a value creative for the license partners as well as good for the Nigerian people. Exploration portfolio, when we took did the RTO with African, of course, we acquired exploration company by the latest acquisition of Senzka, Guinea Bissau. We've been able to reinstate 2 licenses, which we think is very good. We have very good fiscal terms.
And we are in one of the hotspots in the region for exploration. So we are happy with the overall portfolio and the mix with both the stable production, upside in production, new development which is exciting value creative and also this extremely lucrative exploration assets.
Can you say something about the environment for farming down because you're having quite substantial equity stakes in most of these exploration blocks. Can you say anything about the environment for farming down and the interest that you're receiving from potential acquirers of the stakes that you could reduce to be carried for instance on some of these exploration wells?
Thank you. I can comment on that. I think we have a very exciting portfolio of the 3 countries, now Gambia and Guinea Bissau, and we really hope that we also resolve Senegal start next year. There's a new also Minister of Energy in Senegal, which we recently spoke to. So but I think there's as Michael also said that this is the hotspot and we are now in discussions with several other majors and the IOCs and looking at several opportunities, if we're going to do strategic alliances, farm outs and other cooperation models.
And I think we will just wait and see a little bit a couple of more months to see how now Guinea Bissau is very fresh for us. So we need to also understand better in the country and how to operate there. And Gambia has just reinstated. So give us a couple of more months, then we know more about Senegal and also more about who we will prefer to work with and what kind of package we can find in the market today. But I think we are managed to deliver that we promised to the old shareholders of APCL that it was important for us to reinstate these licenses and be dedicated to what we agreed with our shareholders.
So we're also happy to manage that and with great help from our Abu Dhabi partners.
Very good. And with this wide portfolio that you're now having, are you already to develop it? Or would you like to add more frontier exploration blocks or other assets to the portfolio? What's your view on that?
We have ambitious growth targets for 3 years, 30,000 barrels. So we are dynamically seeking Through open. Open seeking value creative transactions. Yes.
And we've got actually a specific question on that growth target because I think it was first launched about a year ago. So this person here is asking, aren't we already like should you deliver on this growth just within 2 years and not additional 3 years? And is the final target date in your view 2 years from now or 3 years from now?
I think when we made the first announcement of the target that was pre oil price crash. So to be realistic, I think that has done setback not only to us but to the whole industry. And I think everybody has lost half a year like we see on the arch development, for example, nothing happened for 6 months in the ministries. It was total standstill. Likewise on the processes with the Gambia and Senegal, everything really.
We lost half a year in all our activities, but we still been able to deliver good results. So yes, but that is more like semantics, I think. As long as we can show a strong growth, which we really believe we can do, If it's 2.5 year or 3.5 year, I'm more concerned about we create value about what we do.
Good answer. So a quite specific question here. Have you contracted a rig for the Congo infill drilling? And when do you expect to start? And the follow-up, have you chosen an FPSO for the RJ projects?
And also have you started to look into rigs or hired specific rigs for that development job?
A bit too specific, we are in negotiations with several parties. There is a number of rigs available in markets. So access to rigs, access to FSLs is not the issue. So time wise, it will not impact us that we not have not yet signed off those contracts. Of course, everything like drilling depends on the COVID restrictions because such operations are complex.
You need to be able to allow people to travel. You need a lot of subcontractors working on a rig. It's a huge logistics operation. So we don't want to end up in a position where we have a rig and no people on board. So it's all need to be managed properly, which Perenko does.
Very good. Last time, you mentioned a target of being transferred to the main list. Is that still on the table? And when do you expect that to happen, if so?
That is still yes, We are still working toward that goal. There is practicalities delayed. And I think just back to this year was very different from what we expected when we started. So that process is still there. So we hope now that as we wrote in the Q3 report that we hope that this will now be completely transferred through from Australia to redomicile by during Q1.
And then the process to get on the main list that has certain criteria, which we then strive to reach within the next foreseeable months or quarters.
The infill drilling at PNG Sud has been scheduled for Q2 next year. And as Claus mentioned, the development of BIS potentially comes later. Can you give any indication of what needs to be in place to move forward with P&G Biz? And if that's if that gets in place, when would you expect that to happen?
For us, this is not like a priority to we have plenty to do on PNGF Seed. So I think we have the capacity and activity of the operator, I think with the investment program we now have on PNGFC. PNGFC is not an urgent thing, so we have more time. It is still an ongoing discussion with the Ministry to get through the formalities. When that is completed, we will then start with the normal appraisal work and then the plans are ready.
It is more like it's not a rush. And then I think in this still in this COVID times, we just need to ensure that things are planned properly, That we don't try to rush anything for the sake of rushing it.
Very good. This is for now the final question. You've been quite clear and outspoken with your M and A strategy indicating that you want to grow to a much more substantial producer through acquisitions. Do you have an approach to M and A that differentiates you from other E and P companies out there? And do you see that you have any advantages when it comes to access to deal flow, technical capabilities or when it comes to establishing relationships, common ground from negotiations, etcetera?
Yes, I think
yes. Well, thank you. Yes, I think we are very well positioned in the Sub Africa and West Africa due to our shareholder base also being coming from Norway and having understanding of IOR is an important factor because we are developing for producing asset and development asset. I think also our combination with Norway and Abu Dhabi still opens a lot of doors in this region, which has colonial history. So I think there's a refreshment of coming from Norway and Abu Dhabi into this region.
And I think we've also seen the results of that when we managed to renegotiate and reestablish in Gambia. And I think as Knut, our CEO alluded to, I think there is great opportunities, maybe more now for M and As than pre COVID because actually this oil price has also made people to look for more efficient operations. And I think the shareholder and the banks and the market are just forcing also the people to the industry to be more efficient. So I think definitely we have we are very well positioned, I think very happy to be on the Stock Exchange in Norway. I think that's also an added value to it.
So and we are, of course, looking and working daily with these kind of potentials. And it has to be the right there's a lot of things that has to match. But I think we are in good process to do that. So it could be smaller transactions or maybe one large transaction that will bring us past our scope of 30,000 barrels. But as our CEO says, it has to be a smart transaction for the shareholders.
That's my job to do. Thank you.
Okay, excellent. I think we've now covered all the topics and all the questions we've received so far. Yes. So thanks for a very good presentation from team Petronor And thanks to everyone that has that have listened in. I think that's it for today.
So thank you all.