Brazilian oil and gas newcomer OGX Petróleo e Gás Participações is eyeing M&A opportunities to expand its operations.
"We see ourselves in the buying mode in the next 12-18 months. We are looking at potential opportunities," OGX CFO Marcelo Torres said in a webcast.
"M&A is something that is very much on our radar screen. We are eager for that," he added, without providing further details.
OGX is interested in buying oil producing assets in Brazil to balance the company's existing portfolio.
"It's something that makes sense. For the right price, we would acquire some producing assets. It's something we would definitely pursue," the executive said.
"We know what we like, but we only buy things that make sense either from a financial valuation perspective or strategic perspective," Torres added.
The company believes its offshore projects are viable even with oil at around US$60/b.
"We are extremely comfortable. Current oil prices leave us in a very positive position," he said. "But looking at the long term, we believe oil prices will be higher than the US$60/b level."
OGX dominated Brazil's ninth hydrocarbons exploration round late last year, snapping up 21 blocks.
10TH ROUND
OGX plans to participate in hydrocarbons regulator ANP's 10th round scheduled for December 18.
"We are doing our homework and also looking at future rounds with a lot of interest," Torres said.
ANP will offer 130 onshore blocks covering 70,370km2 in seven basins: Sergipe-Alagoas, Amazonas, Paraná, Potiguar, Parecis, Recôncavo and São Francisco.
SEISMIC CAMPAIGN
The company expects to have all 3D seismic data on its exploratory blocks by the first half of 2009.
"We'll be receiving the data from Santos basin in March-April and then the numbers from Pará-Maranhão basin in April-May," according to the executive.
OGX plans to start drilling in Santos and Campos basins in September and first oil is expected in 2011.
FINANCIAL RESULTS
OGX posted a 281mn-real (US$127mn) net profit in the third quarter of 2008, the company said in a statement.
The result was due to non-recurring expenses related to its IPO on the São Paulo stock exchange Bovespa.
"The net profit was also driven by financial income from cash investments," Torres said.
The company raised 6.7bn reais in its June IPO, the biggest in Brazil's history.
OGX's cash position amounted to 7.48bn reais at the end of September and will go to fund its exploration campaign.
No comments:
Post a Comment