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 €0.21 per cubic metre in Q2 compared to €0.226 in the previous winter months' quarter.

 

Gas Production and Sales


Q1 17

Q2 17

Change (%)

YTD 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 (€)

195,000

376,000

93%

571,000

Average gas price (€ 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 & Nominated Adviser)

44 (0) 207 383 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
 
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