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February 1, 2023

Romgaz natural gas reserves to bring it USD 16.7 bln in net revenues

Natural gas company Romgaz has proved and probable gas reserves that will bring it USD 16.7 bln in net revenues, according to a basic scenario cited in the report on the evaluation of the company’s resources worked out by U.S. company DeGolyer and MacNaughton, Agerpres reports. On this June 30, Romgaz had proved net gas reserves totalling 62 billion cubic meters and probable net reserves of 13.1 billion cubic meters of natural gas. The consultants explained that they, on evaluating such reserves, considered a range of prices for the residential and non-residential consumers, but also the fact the market will be fully deregulated by 2019 for the residential and by 2015 for the non-residential consumers.
By weighing the values in the home consumer market and the industries, Romgaz now sells the natural gas for an average 168 dollars for 1,000 cubic meters and it will go up to 255 dollars in 2014, to 309 dollars in 2015, to 321 dollars in 2016, to 336 dollars in 2017, to 354 dollars in 2018 and to 363 dollars in 2019This is the basic scenario data. A scenario considering the lowest possible natural gas prices anticipates 13.1 billion dollars in net revenues for Romgaz proved and probable reserves, while the highest-tariffs scenario sets net revenues of 21.8 billion dollars for such reserves. Romgaz currently operates 3,257 production oil wells in Romania, that drill into 147 commercial deposits, as well as 29 exploration wells on nine on-shore sites. ‘The natural gas deposits located in Transylvania basin, that provide more than 90 percent of the Company’s current production, are between 55 percent and 85 percent used up. The Company, at present, seeks to extend or obtain new exploration and/or exploitation licenses. In 2012, the Company’s capital expenditure for exploration and production amounted to 519 million lei, with the money being mainly invested in research and exploration’, says Romgaz Bucharest Sock Exchange listing prospectus.
The initial public offering for Romgaz shares kicked off on Tuesday, Oct. 22, following the approval on Oct. 18 of the offering prospectus by the Financial Supervisory Authority, Romgaz announced on Monday.

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