OSL’s US$483.2m buffer cash for H1 cash

OIL Search Ltd now sits on an estimated buffer cash of US$483.2 million (K1,019.4 million) for the first half of this year ending last month.
This is US$402.1 million (K848.3 million) for the June quarter and US$481.1 million (K1,015 million) from the March quarter, an estimated 16% drop in the cash position.
Although the first half performance was scheduled for release to the markets next month, Oil Search managing director Peter Botten briefly outlined that key cash outflows for second quarter included US$51.8 million (K109.3 million) spent on ExxonMobil-led PNG liquefied natural gas (LNG) project’s front-end engineering and design (FEED), US$28.8 million (K60.8 million) on other exploration activities and US$52.1 million (K109.1 million) on development work.
He said also said due to the introduction of an underwritten dividend reinvestment plan (DRP), there was no outflow of cash relating to the payment of the 2008 final dividend of US$0.04 per share during the quarter.
As per second quarter results, Mr Botten, said: “Oil market conditions improved significantly during the second quarter of this year, with a strong rally in oil prices.
“The average oil price realised was US$55.57 (K117.24) per barrel, compared to US$45.83 (K96.69) per barrel in the previous quarter.
“This year’s second quarter production was 1.91 million barrels of oil equivalent net to Oil Search, up slightly from the previous quarter.
“Strong production performance was achieved in the Kutubu field, underpinned by good rates from the new Usano development wells.”
While giving a sneak preview of Oil Search’s performance in the first half of this year, Mr Botten said there were a several items that were expected to impact the first half profit.
“Oil inventory at the end of last month totalled 420,000 barrels,” he said .
25 July 2009