VANCOUVER, BC, Aug. 12, 2025/ CNW/ – MER (Nasdaq-Stockholm: MER) — Meren Energy Inc. (” Meren” or the “Business”) today released its monetary and operating outcomes for the 3 and 6 months ended June 30, 2025, and is delighted to state its 3rd quarterly circulation of around $ 25 million under its base dividend policy. View PDF variation
Meren President and CEO, Roger Tucker commented: ” Versus a background of increased oil rate volatility and worldwide financial unpredictability, we continue to provide material investor returns whilst keeping a strong balance sheet and substantial liquidity headroom. We have a durable service and are positive of continuing to provide development and returns through business cycle, supported by our premium, high netback properties and financed development drivers.“
Emphasizes *
- Stated the 3rd 2025 quarterly dividend of around $ 25.0 million, bringing overall circulations year-to-date to around $ 75.1 million
- Throughout Q2 2025:
- Accomplished typical day-to-day working interest (” W.I.”) and privilege production of 30,900 boepd and 35,700 boepd respectively, in line with expectations;
- 2 brand-new Egina wells caused stream in Might, which are carrying out in line with expectations, and an effective well intervention in Akpo supplying strong assistance to production efficiency;
- Offered one freight (around 1 MMbbl) at a list prices of $ 64.2/ bbl;
- Pro-actively lowered the RBL by $ 80.0 million, decreasing interest costs and ending Q2 2025 with a financial obligation balance of $ 540.0 million;
- Dispersed the 2nd quarterly money dividend of around $ 25.1 million ($ 0.0371 per share) in June 2025;
- End of Q2 2025 money balance of $ 266.6 million, leading to a net financial obligation position of $ 273.4 million with a Net Financial obligation/ EBITDAX of 0.6 x as at June 30, 2025 RBL center headroom of $ 94.1 million at the end of Q2 2025;
- The Business cancelled its $ 65.0 m standby Business Center and the security has actually been launched.
- Throughout H1 2025:
- Cashflow from operations before working capital modification of $ 177.5 million;
- EBITDAX of $ 248.2 million;
- Money capital expense of $ 58.6 million
- Post duration end, the Business pro-actively lowered the RBL financial obligation balance by a more $ 60.0 million in July 2025, resulting, since the date hereof in a financial obligation balance of $ 480.0 million
|
* All dollar quantities in this news release are U.S. Dollars unless otherwise shown. |
2025 2nd Quarter Outcomes Emphasizes
|
3 months ended |
6 months ended |
Years ended |
||||
|
Meren Emphasizes |
System |
June 30, |
June 30, |
June 30, |
June 30, |
December 31, |
|
Earnings/ (loss) |
$’m |
3.1 |
0.4 |
54.0 |
3.9 |
( 279.1 ) |
|
Earnings/ (loss) per share– standard |
$/ share |
0.00 ( 2 ) |
0.00 |
0.09 ( 2 ) |
0.01 |
( 0.62 ) |
|
Net financial obligation position ( 3 ) |
$’m |
273.4 |
444.5 |
273.4 |
444.5 |
289.1 |
|
WI production ( 3 ) |
boepd |
30,900 |
31,600 |
32,100 |
33,400 |
34,000 |
|
Privilege production ( 3 ) |
boepd |
35,700 |
36,600 |
36,700 |
38,600 |
38,800 |
|
Capital from operations ( 4, 5) |
$’m |
77.7 |
n/a |
177.5 |
n/a |
n/a |
|
EBITDAX ( 4 ) |
$’m |
106.6 |
n/a |
248.2 |
n/a |
n/a |
|
Capital expense( 4 ) |
$’m |
30.4 |
n/a |
58.6 |
n/a |
n/a |
|
( 1 ) |
The table consists of non-GAAP steps. Meanings and reconciliations to these non-GAAP steps are supplied on pages 13-16 of the Report to Investors for the duration ended June 30, 2025. |
|
( 2 ) |
Based upon the weighted typical variety of shares exceptional for the 3 and 6 months duration ended June 30, 2025, of 675,012,308 and 572,481,427 respectively, which represents the recently released shares to BTG Oil & & Gas on March 19, 2025. |
|
( 3 ) |
Net financial obligation position and production numbers as provided for the relative durations consists of one hundred percent of Meren Cage to be equivalent with net financial obligation position and production numbers for the 3 and 6 months duration ended June 30, 2025. |
|
( 4 ) |
Emphasizes are reported for the year 2025 just, on a built monetary info basis, see pages 10 to 11 of the Q2 2025 MD&A for more info. |
|
( 5 ) |
Capital from operations before working capital and interest payments. |
Outlook
Investor Returns
The Business is delighted to reveal that its Board has actually stated the circulation of the Business’s 3rd quarterly money dividend in 2025 of around $ 25.0 million or $ 0.0371 per share. This dividend will be payable to investors of record at the close of service on August 20, 2025
This dividend certifies as an ‘qualified dividend’ for Canadian earnings tax functions. Dividends for shares traded on the Toronto Stock Market (” TSX”) will be paid in Canadian dollars on September 5, 2025; nevertheless, all United States and foreign investors will get USD funds. Dividends for shares traded on Nasdaq Stockholm will be paid in Swedish Krona in accordance with Euroclear concepts on September 10, 2025
To carry out the payment of the dividend, a momentary administrative cross border transfer closure will be used by Euroclear from August 18, 2025, approximately and consisting of August 20, 2025, throughout which duration shares of the Business can not be moved in between the TSX and Nasdaq Stockholm.
Payment to investors who are not locals of Canada will be net of any Canadian withholding taxes that might apply. For more information, please check out: https://mereninc.com/investor-summary/total-shareholder-returns/.
The Business’s Board sees the base yearly circulation policy to be sensible with due factor to consider for its capital allotment alternatives and the concern of keeping a strong balance sheet in a series of market circumstances. Future dividend statements go through traditional Board approval and authorizations.
Nigeria
The Business continues dealing with its JV partners to optimise production efficiency throughout its 3 producing fields, Akpo, Egina and Agbami and advancing the Preowei advancement task towards the last financial investment choice.
The Business had actually formerly assisted to a break to the Akpo/Egina (PPL 2/3) drilling project in Q4 2025 to enable the analysis of the 4D seismic information and comprehensive arise from the wells drilled to improve the maturation of future infill well chances. This break has actually now been advanced to Q3 2025, with drilling anticipated to resume in 2026 consisting of the Akpo Far East near-field possibility and more advancement wells on Akpo and Egina fields.
Akpo Far East is an infrastructure-led expedition chance that in case of business discovery success, provides an appealing brief cycle, high return financial investment chances that would take advantage of the existing Akpo centers. Akpo Far East possibility has an unrisked, finest price quote, gross field potential resource volume of 143.6 MMboe. The targeted hydrocarbons are forecasted to be light, high gas-oil ratio (” GOR”) oil equivalent to those discovered in the Akpo field. If effective, preliminary production might be accomplished from existing production manifolds with the prospective to materially increase reserves on the Akpo Field.
The JV partners are continuing the task optimization work for the Preowei field with the objective of reaching a last financial investment choice. The arise from a re-assessment of the Preowei seismic information are favorable, showing a boost in recoverable resources. Work to verify these outcomes towards task optimization continue with technical workshops prepared for Q3 2025.
For the Agbami field, in addition to the continuous 2024 4D seismic analysis, rig and long lead products contracting activities are advancing for the 2027 infill drilling project. Prospective rig website check outs have actually been concluded and the operator is set up to purchase the Long Lead Products (” LLIs”) in Q3 2025.
Namibia Orange Basin Advancement and Expedition, Blocks 2912 and 2913B
The Venus Field is anticipated to be the very first advancement location in Block 2913B The Venus advancement strategy is for approximately 40 subsea wells connected back to a floating production, storage and offloading (” FPSO”) center with a capability of 160,000 barrels each day of oil.
- Task preparation and decision-making–
- Front-End Engineering Styles (” FEED”): Q2– Q4 2025
- ESIA submission to authorities: Q4 2025
- Last Financial Investment Choice (” FID”) might be made throughout H1 2026
The Business through its shareholding in Effect has an efficient 3.8 percent interest in the Venus task. This interest is totally moneyed through to very first business production under an arrangement in between Effect and TotalEnergies, which covers all of Effect’s share of advancement and expedition expenses on these blocks from January 1, 2024, through to very first business production from the Venus task.
The most recent expedition drilling project was finished on April 25, 2025, with the drilling rig demobilized. A number of more potential customers remain in the procedure of assessment for drilling making use of just recently gotten 3D seismic information.
South Africa Orange Basin, Block 3B/ 4B
Following the giving of an Ecological Permission for expedition activities (drilling of approximately 5 expedition wells) by the Department of Mineral Resources and Energy for the Republic of South Africa on September 16, 2024, the legal notice and appeals procedure continues to advance with the pertinent regulative companies. The operator has actually mentioned that with the approval procedure advancing the present strategy is to drill the very first expedition well on Block 3B/ 4B in 2026 and has actually determined Nayla, a possibility that depends on the northwest of the license location as the prospective drilling target.
The Business finished a tactical farm down arrangement with TotalEnergies and QatarEnergy throughout Q3 2024 that supply it with expedition bring. Deal highlights are:
- Optimum deal worth of approximately $ 46.8 million to the Business.
- The Business will get, based on accomplishing specific turning points specified in the farm down arrangement, staged payments for an overall money quantity of $ 10.0 million, of which $ 3.3 million was gotten at conclusion with the staying balance to be gotten in 2 succeeding payments conditional upon accomplishing essential functional and regulative turning points.
- The Business will likewise get a complete bring of its kept share of all JV expenses, approximately a cap, that is repayable to TotalEnergies and QatarEnergy from production, and which is anticipated to be sufficient to money the Business’s share of drilling for 1-2 wells on the license.
Equatorial Guinea, EG-18 and EG-31
The Business continues to remain in active discussion with market celebrations to draw in farm in celebrations on both blocks, and the goal to finish the active information space part of the workout by end Q3 2025 stays.
If the Business achieves success in bring in farminee partner( s) for these blocks, based on traditional authorizations and approvals consisting of governmental and regulative approvals, the Business prepares for that recently formed JVs might prepare for expedition drilling in late 2026 or 2027. Nevertheless, there is no warranty the Business can protect farminee partners on appropriate terms.
2025 Management Assistance and Actuals
The Business has actually modified its 2025 Management Assistance based upon the H1 2025 actuals and the outlook for H2 2025, the modifications are summed up in the table listed below. W.I. and privilege production varieties have actually narrowed with mid-points for both varieties increasing partially. EBITDAX and capital from operations assistance varieties are modified lower generally from a lower full-year average Dated Brent oil rate quote of $ 69/ bbl, compared to the presumption of $ 75/ bbl utilized for the initial management assistance. The modified full-year oil rate quote of $ 69/ bbl represent typical Dated Brent rate of $ 72/ bbl for H1 2025 and a typical Dated Brent rate of $ 66/ bbl for H2 2025.
|
Initial 2025 |
Modified 2025 |
H1 2025 |
|
|
WI production (kboepd) ( 1 ) |
28.0– 33.0 |
30.0-33.0 |
32.1 |
|
Privilege production (kboepd) ( 2 ) |
32.0– 37.0 |
34.5-37.5 |
36.7 |
|
EBITDAX ($ million) ( 3 ) |
500 – 600 |
450-500 |
248.2 |
|
Capital from operations ($ million) (3 ) |
320 – 370 |
260-310 |
177.5 |
|
Capital expense ($ million) |
150 – 190 |
100-140 |
58.6 |
|
( 1 ) |
Aggregate oil comparable production information consisted of light and medium petroleum and standard gas production web to the Business’s W.I. in Agbami, Akpo and Egina fields. These production rates just consist of offered gas volumes and not those volumes utilized for fuel, reinjected or flared. |
|
( 2 ) |
Privilege production is determined utilizing the financial interest method and consists of expense healing oil, royalty oil and revenue oil and is various from working interest production that is determined based upon task volumes increased by the Business’s efficient working interest in each license. |
|
( 3 ) |
This table consists of non-GAAP steps that do not have a standardized significance recommended by IFRS Accounting Standards and, for that reason, might not be equivalent with the estimation of comparable steps by other business. The Business thinks that the discussion of these non-GAAP figures supplies beneficial info to financiers and investors as the steps supply increased openness. EBITDAX is a non-GAAP step. This is utilized as an efficiency step to comprehend the monetary efficiency from the Business’s service operations without consisting of the impacts of the capital structure, tax rates, devaluation, deficiency, amortization, disability and expedition costs. |
|
Capital from operations before working capital and interest payments is a non-GAAP step. This represents money produced by eliminating the effect of working capital motions from money produced by running activities. It is a step typically utilized to much better comprehend capital from operations throughout durations on a constant basis, and when seen in mix with the Business’s outcomes supplies a more total understanding of the aspects and patterns impacting the Business’s efficiency. |
Management Teleconference
Senior management will hold a teleconference to go over the outcomes on Thursday, August 14, 2025, at 09:00 (EDT)/ 14:00 (BST)/ 15:00 (CEST). The teleconference might be accessed by dial in or through webcast.
Individuals ought to utilize the following link to sign up for the live webcast:
http://webcasting.buchanan.uk.com/broadcast/6891c73e48c43b001371b48d
Individuals can likewise sign up with through telephone with the directions offered on the following link:
https://url.de.m.mimecastprotect.com/s/IIeRCqQgvDuzmYLfMHPsEm_ZR?domain=urldefense.com
- Click the call link and finish the online registration kind.
- Upon registering you will get the dial-in details and a special PIN to sign up with the call in addition to an e-mail verification with the information.
About Meren
Meren is a full-cycle Independent upstream oil and gas business with interests offshore Nigeria, Namibia, South Africa and Equatorial Guinea Its primary properties are producing and advancement properties in deepwater Nigeria run by Majors. The Business holds a leading position in the Orange Basin including its efficient interest in the Venus light oil task, offshore Namibia, and its direct interest in Block 3B/ 4B, overseas South Africa
Extra Info
This info is info that Meren is required to reveal pursuant to the EU Market Abuse Guideline and info that Meren is needed to reveal pursuant to the Swedish Securities Market Act. The info was sent for publication, through the firm of the contact individuals set out above, at 5:00 p.m. EDT on Aug 12, 2025
Advisory Relating To Oil and Gas Info
The terms boe (barrel of oil equivalent) is utilized throughout this news release. Such terms might be deceptive, especially if utilized in seclusion. Production information are based upon a conversion ratio of 6 thousand cubic feet per barrel (6 Mcf: 1bbl). This conversion ratio is based upon an energy equivalency conversion approach mainly suitable at the burner pointer and does not represent a worth equivalency at the wellhead. Considered that the worth ratio based upon the present rate of petroleum as compared to gas is considerably various from the energy equivalency of 6:1, making use of a conversion on a 6:1 basis might be deceptive as an indicator of worth. Petroleum referrals in this news release are to light and medium gravity petroleum and standard gas in accordance with NI 51-101 and the COGE Handbook.
Price quotes of reserves in this news release were prepared utilizing standards detailed in the Canadian Oil and Gas Assessment Handbook and in accordance with National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities. The reserves approximates revealed in this news release are approximates just and there is no warranty that the projected reserves will be recuperated.
Forward-Looking Info
Particular declarations and info included herein make up “positive info” (within the significance of suitable Canadian securities legislation), consisting of declarations associated with: the bigger base dividend circulation; the statement of the $ 25 million quarterly dividend; schedules and expenses of drilling activity consisting of those overseas Namibia, Nigeria and South Africa; the result and timing of expedition, appraisal and advancement activities consisting of those overseas Namibia and Nigeria; the advancement of the Venus discovery; the capability of Meren to protect farminee partners on appropriate terms in Equatorial Guinea; the capability of Meren to provide more development or increased investor returns consisting of by monetizing its properties; the capability of Meren to become a leading independent E&P; the continuing gain from moneyed, high worth development chances, consisting of the Venus oil task in the Orange Basin; expectations relating to free-cash circulation; the capability of Meren to affect its JV partners to sustain and improve production in Nigeria; and declarations relating to access to service chances in Meren’s areas of focus and opening brand-new sources of development capital. Such declarations and info (together, “positive declarations”) connect to future occasions or the Business’s future efficiency, service potential customers or chances.
All declarations aside from declarations of historic truth might be positive declarations. Declarations worrying tested and possible reserves and resource price quotes might likewise be considered to make up positive declarations and show conclusions that are based upon specific presumptions that the reserves and resources can be financially made use of. Any declarations that reveal or include conversations with regard to forecasts, expectations, beliefs, strategies, forecasts, goals, presumptions or future occasions or efficiency (typically, however not constantly, utilizing words or expressions such as “look for”, “prepare for”, “strategy”, “continue”, “price quote”, “anticipate, “might”, “will”, “task”, “anticipate”, “prospective”, “targeting”, “mean”, “might”, “may”, “ought to”, “think” and comparable expressions) are not declarations of historic truth and might be “positive declarations”. Positive declarations include understood and unidentified dangers, continuous unpredictabilities and other aspects that might trigger real outcomes or occasions to vary materially from those prepared for in such positive declarations, consisting of declarations referring to efficiency of product hedges, uninsured dangers, regulative and financial modifications, schedule of products and devices, unexpected ecological effect on operations, period of the drilling program, schedule of 3rd party company and flaws in title, the sustainability of Meren throughout oil and gas rate cycles, the boosted exposure and certainty over making use of capital, and declarations relating to capital concerns. Positive declarations are based upon a variety of presumptions, consisting of however not restricted to, the capability of Meren to shipment more development, the capability to have actually a Board consisted of at all times of a bulk of independent non-executive directors, high worth development chances will continue to be moneyed, and the capability to gain access to service chances in Meren’s areas of focus. No guarantee can be considered that these expectations will show to be proper and such positive declarations ought to not be unduly trusted. The Business does not mean, and does not presume any commitment, to upgrade these positive declarations, other than as needed by suitable laws. These positive declarations include dangers and unpredictabilities connecting to, to name a few things, modifications in macro-economic conditions and their effect on operations, modifications in oil costs, tank and production center efficiency, legal efficiency, outcomes of expedition and advancement activities, expense overruns, uninsured dangers, regulative and financial modifications consisting of flaws in title, claims and legal procedures, schedule of products and devices, schedule of experienced workers, the requirement to acquire necessary approvals from regulative authorities, timeliness of federal government or other regulative approvals, real efficiency of centers, joint endeavor partner underperformance, schedule of funding on affordable terms, hedging, schedule of 3rd party company, devices and procedures relative to requirements and expectations and unexpected ecological, health and wellness effect on operations, the failure to understand the awaited advantages of the amalgamation and the impact of BTG as a considerable investor on the actions of the Business. Real outcomes might vary materially from those revealed or suggested by such positive declarations.
SOURCE Meren Energy Inc.