News

February 23, 2010

As Azurite Approaches Peak Production, PA Resources Prepares To Get Busy With The Drillbit

Two Thousand and nine was a year of two contrasting halves for PA Resources, the Stockholm- and Oslo-listed E&P. The first half of the year was characterised by low oil prices and high levels of capital spending, which meant H1 earnings suffered, while the second half of the year saw oil prices recover and its capital commitments come to an end, leading to a much healthier bottomline.

Taken together the halves made for a solid performance for the full year, with the company pumping an average of 11,200 barrels per day last year, from seven oilfields in North and West Africa.  This generated revenues of SEK2.1 billion and a pre-tax profit of SEK317.5 million, down on the previous year as lower oil prices took their toll.

Oil prices may be out of the company’s control but the spending plans were not.  The big investment of 2009 was the development of the 75 million...