MetalNRG plc, (LON:MNRG), the natural resources and energy investment company, provides an operational update on BritNRG Limited (“BritNRG”) covering production and revenues, asset development and key activities over the last few months.
Production and revenues update
· BritNRG is currently producing an average of 3,500 bbls/month compared with production of less than 1,500 bbls/month averaged in Q1 2021.
· BritNRG sold 3,780 bbls in July at an average price of USD 73.88 per barrel (equivalent to USD 280,000 of gross revenue). Similar levels of sales have been achieved in August with monthly oil sales projected to exceed 4,000 bbls.
· BritNRG’s Operating Partners have agreed cost recovery of 100% of production, which will provide BritNRG with cashflow advantages.
· BritNRG now expects the revenues from the Whisby site to be in excess of USD 2.5 million per year at current forecast oil prices.
· The above achievements are the effects of the operational improvements carried out during 1H 2021. As a result, BritNRG is now profitable.
Update on development of current asset base
· Following a presentation of the outlined development plans by BritNRG to the Oil and Gas Authority, the abandonment notice on EXL-141 Newton on Trent has been postponed to June 2023, allowing time to submit a detailed development plan for formal approval.
· The abandonment notice for EXL-294 Reepham has been postponed to Q3 2022, allowing BritNRG time to develop a more detailed abandonment plan and explore viable redevelopment options (see below) to the base case site abandonment and licence relinquishment.
Key activities on current assets and new ventures
· Whisby Site improvements continue including testing and overhaul of all wellheads and other key activities in liaison with the regulatory authorities.
· BritNRG is progressing a feasibility study to repurpose the suspended well on Reepham (which watered out in 2005) and to redevelop the brownfield site which, potentially, will benefit from an existing planning application, recently approved for development, for a nearby 50-hectare green energy hub due for construction in 2022-2023.
Pierpaolo Rocco, Executive Director and CEO of BritNRG, commented “Our journey has just begun, and we are happy to continue to report solid progress on important fronts. We are taking the necessary time to develop our medium-term strategy, the benefits of which we intend to share with MetalNRG investors in Q4 2021, whilst we progress key activities related to the plan for BritNRG to be listed on the London Stock Exchange in 2022.”
Rolf Gerritsen, CEO MetalNRG Plc, commented “the encouraging news from BritNRG is confirmation of our strategy to invest in near term cash-generative projects and particularly of our decision to invest in BritNRG. We look forward to reporting on our ongoing progress”.
The release of this information was arranged by Rolf Gerritsen, Chief Executive Officer.
