Pieridae Energy has recorded a net loss of $12.9 million in the first quarter, but continue to focus on advancing its Golboro LNG project.
The Calgary-based company proposing to build a $10 billion LNG terminal in Goldboro has cash reserves of $14.7 million and total assets of $369 million.
In February, Pieridae signed a benefits agreement with the Assembly of Nova Scotia Mi’kmaq Chiefs. The agreement means the Mi’kmaq will benefit economically as the Goldboro LNG facility is developed, built and begins operations.
In April, the company announced that it had engaged Kellogg Brown & Root Limited (KBR) to perform a review of an amended version of the previously prepared front-end engineering and design study for its proposed Goldboro LNG Facility. KBR will also conduct an open book estimate necessary for entering into a lumpsum engineering, procurement and construction contract. The total cost for this contract is expected to be approximately $13 million. The proposed activities are expected to occur over the next nine months.
“I was pleased we started the year off by signing a benefits agreement with the Nova Scotia Mi’kmaq, building on the respectful relationship we have worked to build with them for a number of years,” said Pieridae Energy CEO Alfred Sorensen. “The milestones this quarter dovetailed into work that continues to finalise an agreement with a contractor to build the Goldboro LNG facility, and also our ongoing efforts to secure the natural gas supply needed to supply the first facility or train at Goldboro.”
“Pieridae’s financial results for the first quarter of 2019 reflect the fact the Company has evolved into an upstream exploration and production company, as well as a development company focused on the construction of its proposed LNG facility,” it said in a statement. The Company’ operations are now dominated by the assets and activities associated with its acquisition of Ikkuma in late 2018. Management hopes to leverage off of these assets, and grow its upstream business, as it looks to fulfill its goal of becoming a fully integrated LNG company.
Management reaffirms guidance issued in April including average daily production for 2019 expected to be in the range of 16,000 to 18,000 boe/d. Production guidance excludes potential acquisitions. Pieridae’s 2019 upstream capital programme will focus on necessary maintenance, equipping, tie-in and low cost, high-return optimisation initiatives at a cost of approximately $8 to 10 million. Depending on funding initiatives, Pieridae would expect to incur up to $45 million in Goldboro development activities.
For more information visit www.pieridaeenergy.com