Saffron Energy PLC Saffron 104% production increase in June quarter (5211K)
10 July 2017 - 4:00PM
UK Regulatory
TIDMSRON
RNS Number : 5211K
Saffron Energy PLC
10 July 2017
10 July 2017
Saffron Energy Plc
("Saffron" or "Saffron Energy" or the "Company")
Saffron Energy 104% gas production increase in June quarter
Saffron Energy (LON:SRON), the AIM quoted European natural gas
company is pleased to announce its quarterly production update for
the three months ended 30 June 2017.
Q2 Gas Production
Production from the Saffron Energy operated gas fields, Sillaro
(100%) and Bezzecca (90%), has increased by 104% from 862,000
standard cubic metres (30.4 mmcf) in the quarter ended 31 March
2017 to 1.762 million standard cubic metres (62.2 mmscf) in the
quarter ended 30 June. This increase was driven primarily by the
commencement of production from the Bezzecca field in mid-April
2017.
Revenue from gas sales to Shell Energy Italia has also increased
by 93%; in line with the increase in production. Saffron attained a
gas price of approximately EUR0.21 per cubic metre in Q2 compared
to EUR0.226 in the previous winter months' quarter.
Gas Production and Sales
Q1 Q2 Change YTD
17 17 (%) 17
-------------------------- -------- -------- ------- --------
Total production ('000
cubic metres) 862 1,762 104% 2,624
Total production ('000
cubic feet) 30,441 62,224 104% 92,665
Daily production (cubic
metres per day) 9,370 19,368 104%
Daily production ('000
cubic feet per day) 331 684 104%
Daily production (boepd) 57 118 104%
Revenue (EUR) 195,000 376,000 93% 571,000
Average gas price (EUR
per cubic metre) 0.226 0.213 - 6%
-------------------------- -------- -------- ------- --------
Current activity
Saffron expects that gas production and revenue will increase
further in the third quarter ending 30 September 2017, driven by a
full three months contribution of production from the Bezzecca
field.
The Bezzecca gas field was completed and commissioned in Q2 with
first gas flows on 18 April and full commercial production
commencing at a steady state from Level A interval in mid-May
2017.
Over the first two weeks of July, the Company will install a
downhole choke at Bezzecca and production from the field will
recommence immediately afterwards from several levels, namely Level
A, S and possibly R. Production rates in Level A will be adjusted
down to allow for increased aggregate production from multiple
levels.
Chief Executive Officer of Saffron Energy, Michael Masterman
commented: "After a successful IPO in February 2017 and first gas
achieved at Bezzecca in April, I am pleased to announce the
significant increase in our natural gas production, which
translates into higher revenues. We have been able to deliver
Bezzecca on time and despite the short delay on the production
concession grant we are making good progress of Sant'Alberto. We
are at the beginning of a journey to make Saffron a mid-cap
European natural gas production company".
About Saffron Energy PLC
Saffron Energy is a natural gas producer with interests in
Northern Italy. Its portfolio includes two gas production fields;
Sillaro (100%) and Bezzecca (90%) and an application for a near gas
production field called Sant'Alberto. 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.
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
Samantha Harrison
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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