- Although RH PetroGas’s production declined on a y-o-y basis, as did oil prices, its strong cost control (-16% y-o-y) resulted in the company reporting a more than fourfold increase in PATMI to US$14.6m and above our expectation.
- - Read this at SGinvestors.io -
Better-than-expected results.
- RH PetroGas (SGX:T13) reported a 4.6x increase in PATMI to US$14.6m which was helped by the higher oil prices as well as a larger-than-expected drop in lifting costs which speaks to management’s operational ability.
- - Read this at SGinvestors.io -
Drilling two wells in 2025.
- At the company’s results briefing, management stated that it will drill two onshore wells at the Arar area in its Salawati block. These include:
- the NW Klagagi well which will target 55bcf of low-risk gas for development and a deeper segment with an estimated 120bcf of gas; and
- the Karim well which will target around 10mmbbl of recoverable oil. If both are successful, RH PetroGas could see an additional 39mmboe to its reserves, or 1.3x more than its current 2P reserves of 29.9mmboe.
Good cost control.
- Read more at SGinvestors.io.
