BlueNord has published its first quarter of 2024 results. During the quarter, the Company delivered strong operational and financial performance. In addition, first gas from Tyra II was successfully achieved which means the project has entered a new phase of ramp-up where plateau production is expected in Q4 of 2024.
Highlights:
- First quarter net hydrocarbon production of 23.5 mboepd, above quarterly guidance of 22.0-23.0 moepd, with the first Halfdan Tor NE infill well commencing production on 26 March with an initial production rate of 3 mboepd
- First gas from Tyra II achieved on 22 March 2024
- Net 2P Reserves were 185.6 mmboe, with a 2P Reserves Replacement Ratio of 135% with a total of 12.3mmboe added mainly from the maturation of projects
- Revenues of USD 169 million in the quarter and Operating Cash Flow of USD 88 million with net cash flow of USD 77 million
- Refinancing of RBL at an advanced stage with commitments of over USD 1.3 billion and revised facility expected to close by the end of May 2024
Operational
Net hydrocarbon production for the quarter was 23.5.9 mboepd. This is above the quarterly guidance of 22.0 – 23.0 mboepd. Through proactive optimisation work, the natural decline has been mitigated since 2021 and BlueNord published its 2023 2P Reserves of 185.6 mmboe which more than offsets the 2023 production and with a Reserves Replacement Ratio of 135%. In late March the first of several infill wells came onstream with an initial production rate of 3 mboepd, in line with expectations.
Tyra II
The Tyra Redevelopment project made significant progress during the quarter and on 22 March 2024, first gas from the new facilities was achieved. In the initial stages of the ramp-up, challenges with the IP compressor was identified, and while several alternatives for mitigating solutions which will allow for export of gas volumes are being assessed, BlueNord currently expects the restart of gas export in July with volumes being exported to increase during Q3 2024 before plateau production is reached in Q4 2024. As a result, BlueNord has published a preliminary revised Q2-Q4 production guidance to reflect the new timeline.
Financial
Revenues in the first quarter of USD 169 million continues to reflect the strong underlying base production of BlueNord. With EBITDA of USD 88 million, operating cashflow of USD 88 million and available liquidity of USD 308 million, the Company ended the quarter with a robust liquidity position. The plan to re-set the capital structure progressed well during the quarter, and the ongoing refinancing of the RBL is at an advanced stage with BlueNord expecting to close by the end of May a USD 1.3 billion facility maturing in 2029 having already received credit commitments exceeding this amount.
'The first quarter of 2024 has been a monumental period for BlueNord, encompassing not only successful restart of Tyra but also representing an achievement nearly five years in the making since we became a partner in the DUC. The delivery of this project showcases the commitment, resilience and perseverance of all involved parties. When Tyra is fully operational, we are set to transform Denmark from a net importer to a net exporter of natural gas, significantly enhancing energy security in the region and offering a less emissions intensive alternative to imported LNG.
Furthermore, our underlying portfolio continued to perform strongly, with the added boost from the first infill well on Halfdan that came onstream at the end of this quarter. As we look ahead to the remainder of 2024 and beyond, this moment marks the start of an exciting new chapter. We are poised to more than double our production, and with a substantial increase in free cash flow, we will fulfil our longstanding commitment to shareholder distributions. The strong progress we have seen on the RBL refinancing, particularly given the backdrop for bank lending to the oil and gas industry, is extremely positive and a testament to the strength of our business and its outlook,' said Euan Shirlaw, Chief Executive Officer of BlueNord.
The report and investor presentation may be downloaded from the Company's website www.bluenord.com or www.newsweb.no.
Source: BlueNord
