KrisEnergy

KrisEnergy: announced 2Q13 results, which do not reflect the financial effects of the recent Jul IPO. Revenue and EBITDAX (earnings before interest, tax, depreciation, amortization and geological and geophysical expenses and exploration expenses) in line with mgt’s expectations. Revenue was down 22% yoy to US$36.8m on the back of lower pdtn and sales volumes and a decline in average realized oil and gas prices. EBITDAX declined 42% to US$15.6m, due primarily to the decrease in sales volumes, lower realized ASP and increased general and admin expenses. Operating costs declined only 9.6%, and the group extended its net loss to US$8.7m from slightly below breakeven levels last year. The group’s working interest pdtn from the producing areas in Gulf of Thailand, and in the Glagah-Kambuna Technical Assistance Contract (GKTAC) in Indonesia averaged 2,737 bbls of oil equivalent per day (boepd) in 1H13, declining 24% yoy. The decrease in pdtn is inline with the anticipated decline in the Kambuna field as it approached the end of its economic life. Pdtn ceased in Jul ’13, and the group expects to relinquish its entire interest in the GKTAC by year end. In addition, the producing areas in Gulf of Thailand experience scheduled and unplanned shutdowns, exacerbated by bad weather causing delays to on going work. Still mgt remains confident. Notes as the group nears the end of its 4th yr of business, its portfolio continues to grow and will comprise 16 contract areas. For 2H13, the group has two high-impact exploration wells offshore Vietnam and also seismic programs lined up in Indonesia and in the Gulf of Thailand.