Saffron Energy PLC Saffron 41% gas production increase in Q3 2017 (9864U)
October 31 2017 - 2:00AM
UK Regulatory
TIDMSRON
RNS Number : 9864U
Saffron Energy PLC
31 October 2017
31 October 2017
Saffron Energy Plc
("Saffron" or "Saffron Energy" or the "Company")
Saffron 41% gas production increase in September quarter
Saffron Energy (LON:SRON), the AIM-listed European natural gas
company, is pleased to announce its quarterly production update for
the three months ended 30 September 2017.
Q3 Gas Production
Production from the Saffron Energy operated gas fields, Sillaro
(100%) and Bezzecca (90%), has increased by 41% from 1,762 million
standard cubic metres (62.2 mmcf) in the quarter ended 30 June 2017
to 2,481 million standard cubic metres (87.6 mmscf) in the quarter
ended 30 September. This increase was driven primarily by the
ramp-up of production from Bezzecca in mid-July due to the
introduction of production from the S levels (on top of the
production from the A levels).
Revenue from gas sales to Shell Energy Italia has also increased
by 37%; in line with the increase in production. Saffron attained a
gas price of EUR0.208 per cubic metre in Q3 compared to EUR0.213 in
the previous months' quarter.
Gas Production and Sales
Q2 17 Q3 17 Change YTD
(%) 17
-------------------------- -------- -------- ------- ----------
Total production ('000
cubic metres) 1,762 2,481 41% 5,105
Total production ('000
cubic feet) 62,224 87,602 41% 180,267
Daily production (cubic
metres per day) 19,368 26,963 39%
Daily production ('000
cubic feet per day) 684 952 39%
Daily production (boepd) 118 164 39%
Revenue (EUR) 376,000 515,740 37% 1,086,740
Average gas price (EUR
per cubic metre) 0.213 0.208 -2%
-------------------------- -------- -------- ------- ----------
Current activity
Saffron is continuing to produce from Sillaro at a steady-state
of circa. 10,000 scm / day. In early September, the company managed
to reduce production variability by implementing a more frequent
manual well clean-up. This initiative did not require any
additional cost.
In July, production at Bezzecca increased from approximately
10,000 scm / day to approximately 22,000 scm / day by opening the
S-levels and commingling with production from level A.
The Company plans to conduct well operations in level R and
plant maintenance in the December quarter. The planned well
operation in level R is targeted to close off the bottom 2
perforations in level R, then move to commingled production in
levels A,S and R. The well operations and associated maintenance
downtime will reduce December quarter production.
The Company has also been awarded a Production Concession for
its Sant' Alberto gas field, where first production is expected
during the first half of 2018.
About Saffron Energy
Saffron Energy is a natural gas producer with interests in
Northern Italy. Its portfolio includes two gas production fields:
Sillaro (100%), Bezzecca (90%) and another gas field Sant' Alberto
(100%), which is under development. All of Saffron's assets are
located near Milan and Bologna. Saffron Energy commenced trading on
the London AIM Market under the ticker of SRON on 24 February
2017.
On 5 October 2017, Saffron entered into a non-binding
conditional heads of terms with Sound Energy Plc and Po Valley
Energy Limited, to acquire both of their portfolios of Italian
interests and permits. The Proposed Transaction, which is subject
to shareholder approval, would increase Saffron's current
production and revenue stream, adding significantly larger assets
to the current portfolio.
These would include two additional producing gas fields from
Sound Energy's Italian portfolio (the Rapagnano Gas Field and Casa
Tiberi Gas field), as well as the large near-term gas development
fields from Po Valley: Selva (2C 17bcf) located onshore in the
Emilia Romagna Region and Teodorico which is located in the
northern Adriatic sea (2C 47.3 bcf). The proposed transaction would
ultimately strengthen Saffron's position as a mid-cap regional gas
producer and explorer in Southern Europe.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For more information, please visit www.saffronenergy.co.uk or
contact the following:
Saffron Energy plc +44 (0) 7791288381
Michael Masterman, CEO info@saffronenergy.co.uk
Grant Thornton UK LLP (Financial +44 (0) 207 383
& Nominated Adviser) 5100
Colin Aaronson
Jen Clarke
Harrison J Clarke
Turner Pope Investments (TPI)
Ltd (Broker) +44 (0)2036214120
Ben Turner info@turnerpope.com
James Pope
Cassiopeia Services (PR/IR) +44 (0) 7949690338
Stefania Barbaglio Stefania@cassiopeia-ltd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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