Bayfield Energy Holdings PLC Update (9218M)
24 Septiembre 2012 - 1:01AM
UK Regulatory
TIDMBEH
RNS Number : 9218M
Bayfield Energy Holdings PLC
24 September 2012
24 September 2012
Bayfield Energy Holdings plc
('Bayfield' or 'the Company')
Update
Bayfield Energy Holdings plc (AIM ticker: BEH), an upstream oil
and gas exploration and production company with interests offshore
Trinidad and South Africa, is pleased to provide the following
updates concerning its activities.
Oil sales contract
Bayfield and the Trinidad state oil company, Petrotrin, have
agreed revisions to the Crude Oil Sales Agreement governing the
sale of Bayfield's share of production from the Trintes field,
offshore Trinidad.
Bayfield first entered into a contract for the sale of its crude
oil with Petrotrin in April 2009, which set the sales price at a
17.5% discount to the published price for West Texas Intermediate
("WTI") crude, a commonly used marker for crude sales in the
Caribbean market. The discount of 17.5% reflected the low volumes
produced by Bayfield at that time of around 600 barrels of oil per
day (bopd).
The negotiations leading to the revised contract terms have
recognised that developments in crude markets have resulted in a
situation where the use of WTI as a reference price no longer
fairly reflects the market value of Bayfield's crude and also
acknowledged significant increases in production from the Trintes
field.
Accordingly, Bayfield and Petrotrin have agreed upon revised
pricing terms for Bayfield's crude such that the sales contract
will adopt Brent crude as the reference price and a revised
discount of 9.5% for a minimum period of 12 months. The revised
terms are effective from 1 August 2012. Brent has been trading
recently at a premium to WTI of around US$20.00 per barrel.
There are no other material changes to the contract terms.
Exploration programme and rig deployment
The Company previously announced its contractual commitments to
utilise the Rowan Gorilla III rig during Q3 and Q4 2012 to drill
two wells in furtherance of its exploration programme on the
Galeota licence in Trinidad. The rig is presently engaged in
drilling on behalf of Niko, a co-signatory to the drilling
contract, and is not scheduled to be available before November.
Following its release by Niko, it is expected that the rig will be
assigned by Bayfield and Niko to a third party operator in Trinidad
for a period of at least six months. As a consequence, Bayfield
will have no further liability under the rig contract except in
relation to any future wells to be drilled at its option.
Bayfield Energy Chief Executive, Hywel John, commented:
"It is encouraging to report on the success of our initiatives
to improve cash flow and manage our financial commitments to enable
us to establish a sound platform from which to continue our
exploration programme."
Bayfield will provide an operations update on 28 September,
together with the announcement of its results for the six month
period ending 30 June 2012.
- ends -
Bayfield Energy +44 (0)20 7920 2330
Hywel John, Chief Executive Officer
Seymour Pierce +44 (0)20 7107 8000
Jonathan Wright/Stewart Dickson (Corporate Finance)
Richard Redmayne/David Banks (Corporate Broking)
FirstEnergy Capital LLP + 44 (0)20 7448 0200
Hugh Sanderson
M:Communications
Patrick d'Ancona +44 (0)20 7920 2347
Ann-marie Wilkinson +44 (0)20 7920 2343
Andrew Benbow +44 (0)20 7920 2344
This information is provided by RNS
The company news service from the London Stock Exchange
END
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