Key aspects from the full financial review:
Total income in the second quarter 2021 amounted to MNOK 15.6, (0.0 in 2020). The increase is due to the acquisition of a 5% share in the Polarled gas pipeline with completion 30.11.2020. On an annual basis, delayed start-up of Dvalin has an estimated negative impact of 18 MNOK on the revenues, meaning that MVE had expected approximately 4.5 MNOK more in revenues for the third quarter of 2021. Operating loss for the period was MNOK 2.0 (12.2 MNOK in 2020), where the improvement from 2020 was caused by an increase in revenues. The total operating expenses amounted to MNOK 17.6 (12.2 MNOK in 2020). The difference is a consequence of increased exploration activity, and depreciations of the Polarled gas pipeline acquired in Q4 2020.
On 12 November 2021 M Vest Energy announced the purchase of 7.56% working interest (WI) in Draugen, 4.4424% WI in Brage, and 0.8% WI in Ivar Aasen from Neptune Energy Norge AS (“Neptune”). In addition to the oil and gas producing fields, the transaction includes a 1.2092% WI in Edvard Grieg oil pipeline and 1.8138% WI in Utsira High gas pipeline. The acquisition will add reserves of 7-8 million barrels of oil equivalents with significant upside potential. For 2022 the expected production is 1,700 – 1,800 barrels of oil equivalents per day. The agreed consideration is equity guaranteed. The guarantee is accepted by the seller Neptune Energy Norge AS. Government approval of the transaction is expected Q1 2022, with effective date being 1 January 2022. Through the transaction, and as of 1 January 2022, M Vest Energy AS will become a fully integrated E&P company with oil and gas production, exploration activity, infrastructure ownership and potential development projects.
Full interim financial report 2021 Q3: Interim financial report 2021 Q3