Canada’s Trimble Resources Corporation (TRC) posted $11.3 million gross revenue from oil sales during the nine months period, which ended January 31, 2002, down 42 percent from the $19.5 million registered in the comparative period the previous year. Crude oil prices decreased from $23.83 per barrel on April 30, 2001 to $18.50 per barrel on January 31, 2002.
TRC is primarily engaged in the acquisition, development and production of crude oil properties and currently holds—through a subsidiary—a 41.25 percent equity and 50 percent voting interest in Comeco Petroleum Inc, whose major asset is a 28.57 percent interest in the East Shabwa oil development project in Yemen. The project operator is TOTAL/FINA.
During the reported nine-months period, TRC's share of East Shabwa oil sales was 474,217 barrels, gross, compared to 670,666 barrels, gross, for the comparative period last year, a decrease of 29 percent. The average price per barrel was $23.78 for current period compared to $29.05 in the comparative period, a decrease of 18 percent.
Direct operating expenses were $2.8 million for the current period compared to $1.9 million for the comparative period, primarily as a result of maintenance services provided in the current period. This resulted from the extended use of machinery and equipment in the preceding year, due to the increase in the oil production.
Transportation facilities usage fees and tariffs decreased from $0.7 million in the comparative period to 0.9 million in current period. Depletion, depreciation and amortization decreased from $6.8 million in the comparative period to $5.7 million in the current period, primarily due to the decrease in oil production.
TRC reported operating income of $2.1 million and $9.8 million in current periods in 2002 and 2001 respectively, before interest and general and administrative expenses. General and administrative expenses were $1.2 million and $1.7 million in the periods ended January 31, 2002 and 2001 respectively.
Although the TRC' investment in Comeco is passive, the company is actively seeking other strategic options and potential disposition alternatives for Comeco. As a result, the TRC has incurred soft costs in considering such alternatives, which accounts for the relatively high general and administrative expenses, which include items such as legal and accounting fees incurred in drafting documents and analyzing strategic alternatives, according to a company press release.
Income before income taxes was $1.5 million in current period compared to $5.4 million in the comparative period, primarily as a result of the decrease in oil sales, which was partially offset by gain on investments and gain on debt extinguishments in current period. TRC paid income taxes to the Yemen government of $2.1 million and $4.6 million in the 2002 and 2001 periods respectively relating its oil and gas activities in Yemen.
The exploration and development program has resulted in the discovery and partial exploitation of three currently producing oil fields: Khair, Atuf N.W. and the Wadi Taribah. The Kharir field is the largest of the three fields containing a total of 11 producing wells. The Atuf N.W. field is the second largest field with current production only from the Biyad sandstones penetrated by three production wells. The Wadi Taribah has only one currently producing oil well from the fractured Basement zone.
Oil is transported by pipeline from the Kharir field to the main export pipeline in the adjacent Masila block which is operated by Nexen (formerly Canadian Occidental). A short pipeline spur connects the Atuf N.W. field to the main Kharir pipeline. Oil is trucked from the Wadi Taribah field to the Kharir field. The produced oil is marketed in conjunction with Nexen's production. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
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