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Maurel & Prom - Annual Results 2009


News provided by

Maurel & Prom

Apr 07, 2010, 04:40 ET

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    2009: a year of transition...

    Onal first oil

    - First oil on 9 March 2009 (average entitlement of 6,975 b/d over the
      year)
    - Additional investments to meet satellite production

    Late exploration success. A promising new play: Kissenda

    - An intensive programme: EUR230m in exploration expenses
    - A discovery rate below that of previous years
    - Two major successes in 2009 (OMOC and OMGW) and one in 2010 (OMOC-N)
    - New reservoir found: Kissenda

    The Group's management of the credit crisis

    Disposal of Colombian assets

    - Major reduction in production (approximately 18,000 b/d of entitlement)

    Loan restructuring

    - Extraordinary and non-recurring financial expenses
    - Major liquidity: EUR428m as of 31/12/2009

    ... characterised by contrasting results

    - 2009 sales: EUR183m
    - 2009 corporate net income: EUR143m
    - 2009 net consolidated loss: -EUR51m
    - Contrasting results explained by the recognition of the
      capital gain from the sale of the Colombian assets in the
      unconsolidated financial statements and of a loss in sales (EUR293m
      over 2008) and income (EUR84m) in the consolidated financial
      statements, not yet offset by production in Gabon.
    - Proposal of a dividend of EUR0.10 per share along with a free
      allocation of share subscription warrants
    - Sustained oil-services activities, increased profitability

    2010: a year of hope

    A promising outlook

    - Initial approach to the P1+P2 reserves, net of royalties, of the OMOC-N
      field at 7 Mboe
    - Group's oil reserves at 123 Mboe as of 1/4/2010 vs. 114 Mboe as of
      1/1/2009
         - i.e. 53 Mboe in P1 reserves (+64%)
         - and 123 Mboe, +7%, in P1+P2

    - Major contribution from Nigeria:
         - 80 Mboe of oil resources in Nigeria (P1+P2 = 27 Mboe, C1+C2 = 53
           Mboe)

    - Major potential in gas:

         - in Tanzania: 250 Bcf net of royalties on Mnazi Bay (the equivalent
           of 45 Mboe)
         - in Tanzania: Mafia Deep currently undergoing appraisal
         - in Nigeria: 340 Bcf net of royalties on OML 4, 38 and 41 (the
           equivalent of 60 Mboe)

    Improvement in risk profile:

    - Production progressing in Gabon: objective of 15,000 b/d net in 2010
    - Investment concentrated on appraisal and development
    - Focus on production in Gabon and Nigeria
    - Significant opportunities in Colombia, Tanzania and the Congo

2009: a year of transition characterised by mixed results

Against a difficult economic and financial backdrop, the Group had to implement appropriate responses in order to guarantee its financial autonomy and free up cash. Consequently, the Group undertook a major restructuring of its assets and loans:

    - disposal of most of the Colombian assets;
    - signing of a financing agreement (RBL) for $255m;
    - a new convertible bond issue (2014 OCEANE bonds);
    - repayment of a portion of the 2010 OCEANE bonds;
    - subscription of a 45% stake in SEPLAT, a Nigerian company,
      to get 45% of the OML 4, 38 and 41.

In this depressed market, the restructuring of the financial debt generated significant financial costs and expenses, which directly impacted the Company's financial statements.

The deferment of the production start-up date in the ONAL and OMKO fields (3 months) is also reflected in a reduced level of sales for oil activities already impacted by the loss of production that once came from Colombia.

At the same time, the Group continued its voluntary exploration programme, generating exploration expenses that had a significant impact on the Group's operating income. Nevertheless, there were two major successes in Gabon: OMGW and OMOC-N, which revealed a new play, Kissenda. This will be a major research topic over the coming months.

As a result of the investments made in Gabon in the Onal region, the Group is able to put any new discoveries into almost immediate first oil production. This is currently the case with the Omko and Omgw field and will shortly be the case with the Ombg field, leading to a significant rise in the Group's production level in 2010.

The accounts discussed below, were approved by the Board of Directors March 31, 2010. The audit procedures on the financial statements have been made. The certification report is being issued.

As of 1 January 2010, after repayment of EUR183m relating to the balance on the 2010 OCEANE bonds, the Group had cash flow of EUR245m.

    In EUR millions                                 2009      2008      2008
                                                         retreated published

    Sales                                            183        93       385

    Income from production and oil-related            39         7        Na
    services
    Exploration write-offs                           -53       -25        Na
    Other                                             -3                  Na
    Income from production, exploration and
    oil-related services                             -18       -18        Na

    Operating income                                 -28       -10        96

    Financial result                                 -25       -18        -5
    Income before tax                                -53       -28        91
    Net income from continuing operations            -46       -22        63
    Net income from discontinued operations           -5        84         -

    Net income of the consolidated Group             -51        63        63

    Net cash flow from operating activities           53        49       193
    Investments (including activities sold )         439       539       539
    Closing cash and cash equivalents                428       189       189

Note that sales for Colombia in 2008 amounted to EUR293m, with net profit of EUR84m.

The Group's Board of Directors will propose a dividend of EUR0.10 per share. To reward the shareholders and build their loyalty, the Board of Directors also wishes to issue free share subscription warrants in addition to the dividend, the terms and conditions of which will be reviewed soon and given to the AMF..

The oil industry was marked by volatile oil prices. In 2009, the average prices for Brent and WTI fell respectively by 37% and 38% from 2008. In contrast, the increase in the American currency had a favourable impact on sales, limiting the negative impact of changes in oil prices.

Production

The Group's average net production in 2009 (after in-kind oil taxes = entitlement) was 6,975 b/d (8,578 b/d including Venezuela).

2009 was marked by the long-term testing of the Omko-101 well that began on 23 February 2009 and the first oil from the Onal field on 9 March 2009.

Oil and gas production in Venezuela, net of a 30%-deduction in kind on oil, was 1,603 boepd for 2009. Oil represented 58% of the production. This activity is not included in the Group's sales.

Sales

Sales for fiscal year 2009 totalled EUR183.2m versus EUR92.3m in 2008 (adjusted for the disposal of Hocol). This increase is the result of the first oil start-up of the Onal and Omko fields in Gabon.

Early in 2009, the Group implemented a hedging policy on oil prices. The average hedge price was $61.7/b whereas the average price of Brent was $61.5/b in 2009, reaching a maximum of $80.22 and a minimum of $40.04. This is reflected in a negative sales figure of EUR15.9m.

Operating income

Operating income for fiscal year 2009 was (-EUR28.3m). This was primarily due to the following:

    - (-EUR53.5m) in write-offs due to the major exploration
      programme.
    - (-EUR35.3m) in amortisation and depreciation relating mainly to the
      Onal production fixed assets (-EUR12.4m), Omko (-EUR4.0m) and Banio
      (-EUR0.3m), and to the oil-related services company Caroil (-EUR15.5m).

Production start-up at Onal will improve Group margins, while drilling operations has withstood the crisis remarkably well.

    Financial result
    The financial result was (-EUR25m). This can be broken down as follows:

    - interest expenses pertaining to OCEANE bond loans of
      (-EUR35m), of which (-EUR12.8m) related to the 2014 OCEANE bonds;
    - gains on oil and gas derivatives of EUR13m related to hedges
      for first quarter 2009;
    - income on currency derivatives of EUR22.2m resulting
      primarily from current cash management operations carried out with a
      view to limiting foreign exchange risks in the amount of (-EUR30.8m)
      generated by the Company as a result of its strong position in dollars.

Net income

Maurel & Prom's consolidated net income was (-EUR50.7m). This income was impacted by the consolidated net income of activities sold in Colombia (Hocol) amounting to a loss of EUR4.6m. This includes all income and expenses from business activities sold up to the loss of control on 28 May 2009 as well as the actual income from disposals.

The price supplement clause relating to the Huron field on the Niscota license has not been valued yet as it depends on the assessment of those reserves by an independent certifier as of 31 December 2010. The ceiling has been set at US$50m.

The price supplement clause is based on the average oil price for 2010 and was marked to market at the end of December 2009, i.e., EUR37.8m. The final amount of this price adjustment is not known but is capped at US$65m.

Net unconsolidated income of Etablissements Maurel & Prom amounted to EUR143m. This unconsolidated income reflects primarily the gain from the disposal of Hocol Colombia and intra-group dividends.

Balance sheet

The total balance sheet as of 31 December 2009 was EUR1,645m. Group shareholders' equity amounted to EUR940m versus EUR1,036m as of 31 December 2008, a decline of EUR96m. This is due primarily to the impact of the adjustment made to the derivative valuation as of 31 December 2009 (-EUR61.3m), the dividend distribution (-EUR40m paid in July 2009), the premium related to the 2014 OCEANE bonds of EUR16.7m, and currency translation adjustments of EUR24.6m.

Investments

Total investments in 2009, including business activities sold, amounted to EUR439m, and can be broken down as follows:

            EURk          Colombia Gabon Tanzania Mozambique Congo Syria



    Exploration              19       99      68        10      16    13
    Development               0      141
    Oil-related services      2        3       1                10
           TOTAL             21      243      69        10      26    13

    (table continued)

        EURk               Other TOTAL    Business          Total
                                          activities    including
                                          sold           business
                                                       activities
                                                             sold
    Exploration               5    230        21
    Development                    141        31
    Oil-related services            15         0
           TOTAL              5    386        52              439


The value of intangible assets as of 31/12/2009 was EUR458m, of which EUR141m for the Bigwa Rufiji Mafia licence in Tanzania.

Cash flow

The Group's operating cash flow amounted to EUR13m. Net cash flow from operating activities was EUR53.3 million.

As of 31 December 2009, Maurel & Prom posted cash of EUR428m (EUR210m of which was in American dollars for an amount of $302m), an increase of EUR239m over 31 December 2008 due primarily to:

    - inflows from the disposal of the Colombian assets amounting
      to EUR457.2m,
    - sustained investment of EUR386m (EUR439m when business
      activities sold are included) across all Group activities,
    - the impact of the retrocession to Tulip Oil of 15% of the
      interests in the Onal and Omko fields (+EUR77.7m),
    - the difference between the income from the 2014 Oceane bond
      issue and the buy-back of the 2010 Oceane bonds (+EUR75m),
    - inflows from the sale of the derivatives allocated to risk
      management in respect of the Colombian activities sold (+EUR66.2m),
    - the dividend paid on 20 July 2009 for a total amount of
      EUR40m, including EUR8m reinvested in shares.


    P1+P2 oil reserves of 123 Mboe net of royalties
    P1+P2 gas resources of 50 Mboe net of royalties

The reserves were certified on 1 January 2010 by DeGolyer & MacNaughton based on economic conditions and using existing geological and engineering data to estimate the quantities of hydrocarbons that could be produced. Since the assessment process is a matter of subjective judgement, subsequent reassessments may be required depending on further knowledge of the fields.

The reserves associated with the OMOC-N field discovered in February 2010 have been evaluated, without any development plan, by DGMN on 1 April 2010 at 2.8 Mboe in P1 reserves and 6.7 Mboe in P1+P2 reserves, net of royalties. That assessment pertains to a first approach of the reserves in this field based on a single well and one seismic line.

The reserves relating to the Nigerian acquisition are not included in the assessment of reserves hereunder (see next section).

After adjustment for the portion of the reserves related to the gas fields, as of 1 January 2009 the Group had 114 Mboe oil. In 2009 and early 2010, the Group had thus identified an additional 13 Mboe of P1+P2 reserves net of royalties, which can be compared with a production net of royalties of 3 Mboe (including Venezuela).

The development of the Onal field made possible a remarkable increase of +66% in P1 reserves, to the detriment of the quantity classified under P2 in 2009.

The following table represents the level of the Group's oil reserves net of royalties. It does not include potential reserves related to exploration.

    Oil reserves (in MMboe*)

    Region     License   Oil reserves less         P1      P2     2P =     P3
                         royalties                               P1+P2

    Congo      Loufika   Reserves (01/01/09)      0,0     0.2      0.2    0.5
               (Oil)
                         2009 production (net                      0,0
                         of royalties)
                         Revision                 0,0    -0.2     -0.2    0.2
                         Reserves (01/01/2010)    0,0     0,0      0,0    0.7
    Gabon      Onal      Reserves (01/01/2009)   23.6    61.0     84.6   22.1
               (Oil)
                         2009 production (net    -2.0             -2.0
                         of royalties)
                         Revision                14.9   -10.4      4.6   13.6
                         Reserves (01/01/2010)   36.6    50.6     87.2   35.7
               OMKO      Reserves (01/01/2009)    3.1    15.3     18.5  153.0
               (Oil)
                         2009 production (net    -0.6             -0.6
                         of royalties)
                         Revision                 4.8    -9.9     -5.2 -148.1
                         Reserves (01/01/2010)    7.3     5.4     12.7    4.9
               OMBG      Reserves (01/01/2009)    0.8     3.4      4.2   13.9
               (Oil)
                         2009 production (net     0,0              0,0
                         of royalties)
                         Revision                 0,0     0,0      0,0    0,0
                         Reserves (01/01/2010)    0.8     3.4      4.2   13.9
               OMGW      Reserves (01/01/2009)    0,0              0,0
               (Oil)
                         2009 production (net     0,0              0,0
                         of royalties)
                         Revision                                  0,0
                         Reserves (01/01/2010)    1.8     4.3      6.1    3.2
               Banio     Reserves (01/01/2009)    0.4     0.1      0.6    0,0
               (Oil)
                         2009 production (net    -0.1             -0.1
                         of royalties)
                         Revision                 0.1    -0.0      0.1    0,0
                         Reserves (01/01/2010)    0.4     0.1      0.5    0,0
               Total     Reserves (01/01/2009)   28.0    79.8    107.8  188.9
               Gabon
                         2009 production (net    -2.8     0.0     -2.8    0.0
                         of royalties)
                         Revision                21.6   -16.0      5.6 -134.5
                         Reserves (01/01/2010)   46.8    63.8    110.7   57.6
    Venezuela  B2X 70-80 Reserves (01/01/2009)    4.2     2.0      6.2    0.1
                         2009 production (net    -0.3             -0.3
                         of royalites)
                         Revision                -0.3     0.0     -0.2
                         Reserves (01/01/2010)    3.7     2.0      5.7    0.0
    TOTAL      Oil       Reserves                32.2    82.0    114.3  189.5
                         (01/01/2009)**
                         2009 production (net    -3.0     0.0     -3.0    0.0
                         of royalties)
                         Revision                21.3   -16.2      5.2 -134.3
                         Reserves (01/01/2010)   50.5    65.8    116.4   58.3

    Gabon      OMOC-N    Assessed reserves        2.8     3.9      6.7   16.5
                            Q1 2010 production   -0.6             -0.6
    TOTAL as of 1 April                          52.7    69.8    122.5   74.8
    2010


    * MMboe = Million barrels of oil equivalent.
    ** adjusted for reserves in Colombia.
    P1 = proven reserves, P2 = probable reserves, P3 = possible reserves

Proven reserves amounted to 52.7 MMboe (P1), +64%, and proven and probable reserves to 122.5 MMboe (P1+P2), +7%. They represent the Company's share in each of the licenses, less royalties.

At the Onal field (85%): The drilling of wells in the south-east area of the Onal field, which has shown an extension of the oil zone, and the behaviour of the wells in first oil production since 9 March 2009 have made it possible to generate P1+P2 reserve levels at the end of 2009 exceeding the corresponding reserves at the end of 2008, and that, when taking into account the 2009 production of up to 2 MMboe. The increase (13 MMboe) in P1 reserves is the result of the reclassification in that category of a portion of the reserves classified under P2 as at 1 January 2009. Conversely, since water injection had not started until late December 2009, the expected effect on recovery was only applied, for this year, to P2 reserves. P1+P2 certified reserves do not correspond to the Gres de base play.

At the Omko field (85%): The drilling of the Omko-102 and Omko-103 wells made it possible to increase the P1 reserves by 4.2 MMboe. Conversely, the serious depletion of those wells resulting from the production of Omko-101 indicates a more limited extension of the reservoir in the direction of the water zone which affects 2P reserves. The Omko-102 and Omko-103 wells will be turned into water injection wells in 2010 in order to increase pressure in the reservoir. Redefining the boundaries of the field has as a result a drastic decrease in P3.

Following the discovery of the Omgw field in December 2009, DGMN certified 1.8 MMboe in P1 reserves and 6.1 MMboe in P2 reserves for that field which started first oil production in March 2010.

There has been no change in the reserves of the Ombg (85%) field. A flow line originating from the Omgw field and connecting it to the Onal production centre will be used to collect the production from this field during 2010.

The certified reserves of the Banio field (92.5%) amounted to 0.5 MMboe; they are related to the Banio-2 well.

    Gas resources (in MMboe*)

    Country   License      Gas resources net of       P1   P2  2P=P1+P2    P3
                           royalties
    Sicily       Fiume
                Tellaro
                 (Gas)     Resources (01/01/2009)    0,0            0,0  98.3
                           2009 production (net of
                           royalties)
                           Revision
                           Resources (01/01/2010)                        98.3
    Tanzania   Mnazi Bay   Resources (01/01/2009)    0,0            0,0
                           2009 product (net of
                           royalties)                               0,0
                           Acquisition                   45.0      45.0  75.0
                           Resources (01/01/2010)    0,0 45.0      45.0  75.0
    Venezuela  B2X 70-80   Resources (01/01/2009)    3.0  1.6       4.6   0,0
                           2009 product (net of
                           royalties)               -0.3           -0.3
                           Revision                  0.3  0.2       0.4
                           Resources (01/01/2010)    3.0  1.8       4.8   0.0
      TOTAL       Gas      Resources (01/01/2009)    3.0  1.6       4.6  98.3
                           2009 product (net of
                           royalties)               -0.3  0.0      -0.3   0.0
                           Revision                  0.3 45.2      45.4  75.0
                           Resources (01/01/2010)    3.0 46.8      49.8 173.3


    * MMboe = Million barrels of oil equivalent.
    ** adjusted for reserves in Colombia.
    P1 = proven reserves
    P2 = probable reserves
    P3 = possible reserves

The gas/oil conversion factor used is: 1 barrel of oil = 5,610 cubic feet of gas.

The quantities of gas related to the Mnazi Bay license in Tanzania, in which the Group has acquired a 38.22% stake, have been assessed by Rose & Associates at 45 MMboe in P1+P2 and 75 MMboe in P3 for Group share net of royalties.

Impact of 2009 and 2010 acquisitions on resource levels

In 2009 the Group expanded its mining portfolio in Tanzania and Mozambique by working with Cove Energy to regain some of the Artumas assets.

The quantities of gas related to the Mnazi Bay license, in which the Group has acquired a 38.22% stake, are not taken into account in the Group's reserves. These gas resources have been assessed by Rose & Associates at an oil equivalent of 45 MMboe (1 barrel of oil = 5,610 cubic feet of gas) in P1+P2 and 75 MMboe in P3 for Group share net of royalties.

At the end of January 2010, the Group acquired a 45% stake in the Nigerian company SEPLAT. This company has signed an agreement with Shell, AGIP and TOTAL to acquire a 45% stake in the OML 4, 38 and 41 licenses in Nigerian onshore operations.

The 2P reserves (P1+P2) of this license, before the deduction of royalties, were assessed by Gaffney, Cline & Associates at 76 MMboe for the SEPLAT share (oil and condensate), i.e., 27 MMboe for Maurel & Prom net of royalties. In addition, there are some discovered fields that require more work in order to certify additional reserves (assessed at 53 MMboe for M&P's share net of royalties and qualified as C1+C2), as well as an as-yet unquantified exploration potential supported by a 3D seismic.

There are also gas resources of low assessment. These resources have been assessed by Gaffney, Cline & Associates at 26 Mboe for Maurel & Prom's share net of royalties for the gas fields in production and at 34 Mboe for the gas fields that have been discovered but not developed.

Outlook for growth

Maurel & Prom has suffered more than others from the financial crisis that began in 2008.

Within a few months the theoretical lines of credit available to the company fell from $800m to zero. In spite of this, the Group was able to dispose of its Colombian assets satisfactorily, which eased the financial stress. This reassured the market and renewed a portion of the OCEANE bonds maturing in January 2010. This necessary operation was extremely costly in terms of intermediation and interest rate costs.

It should also be noted that the exploratory drilling campaigns produced results that were immediately disappointing. However, successful results are expected of the OMOC-N-1 and OMGW-1 wells, which will be exploited without delay. These wells can confirm the existence of a new type of reservoir already identified on Omko: Kissenda, much of which seems to be located on our license. Development will use the Onal facilities and require only modest investment.

In addition, agreements concluded in respect of Nigeria, after 10 years of unsuccessful attempts, have opened the door to fast and very significant expansion in a major oil-producing country in collaboration with quality partners.

These two successes will enable the Group to increase its reserves considerably within a very short period of time. The other plays, Banio (Gabon), Congo, Tanzania, and South America, are likely to produce more news in 2010. This fiscal year will see high-risk exploration efforts being gradually reduced in favour of appraisal-delineation and development operations.

This reorientation, a result of the work carried out in 2008 and 2009, will give Maurel & Prom a lower risk profile thanks to more predictable operations.

Over the last decade, Maurel & Prom has accumulated shareholders' equity of approximately EUR1bn. This enables us to focus on the various regions we have acquired and into which we have put so much effort in recent years.

    Consolidated financial statements for fiscal year 2009
    I - Group Balance Sheet
    Assets

    In thousands of euros                       Note    31/12/2009 31/12/2008

    Intangible fixed assets                      4         457,731    681,766
    Tangible fixed assets                        5         547,432    728,294
    Non-current financial assets                 6          21,030     21,000
    Investments accounted for under the          7          32,508     37,701
    equity method
    Non-current derivatives instruments          10         37,912          0
    Deferred tax assets                          21         10,647     18,979
    Non-current assets                                   1,107,260  1,487,740

    Inventories                                  8           4,095     10,123
    Trade receivables and related accounts       9          33,434     39,003
    Other current financial assets               9          31,671     23,220
    Other current assets                         9          39,432     72,482
    Income tax receivable                        21          1,518        417
    Current derivatives instruments              10            162     70,734
    Cash and cash equivalents                    12        427,576    191,544
    Current assets                                         537,888    407,523

    Total Assets                                         1,645,148  1,895,263


    Liabilities and Shareholders' Equity

    In thousands of euros                       Notes  31/12/2009  31/12/2008

    Share capital                                13        93,364      92,839
    Issue, merger and acquisition premiums       13       221,607     199,113
    Consolidated reserves                        13       753,972     768,005
    Treasury shares                              13      (78,664)    (86,016)
    Net income, Group share                      13      (50,650)      62,505
    Shareholders' equity, Group share                     939,629   1,036,446
    Minority interests                                          1           1
    Total shareholders' equity                            939,630   1,036,447

    Non-current provisions                       14        15,346      42,830
    Non-current bonds                            15       260,770           0
    Other non-current borrowings and loans       15             0       3,656
    Non-current derivative instruments           10        14,976       4,500
    Deferred tax liabilities                     21        27,339     157,005
    Non-current liabilities                               318,431     207,991

    Current bonds                                15       195,682     375,024
    Other current borrowings and loans           15            53      16,008
    Trade payables and related accounts          16        89,165     104,395
    Income tax payable                           21         3,849      29,644
    Other creditors and sundry liabilities       16        45,277      60,708
    Financial instruments                        10        40,395      14,861
    Current provisions                           14        12,666      50,185
    Current liabilities                                   387,087     650,825

    Total Liabilities and Shareholders' Equity          1,645,148   1,895,263


    II - Group Income Statement

    In thousands of euros       Note 31/12/2009 31/12/2008* 31/12/2008
                                                             published

    Sales                               183,249      92,968    385,213
    Other income                            848       8,630     15,773
    Purchases and change in             (26,439)    (22,028)   (33,511)
    inventory
    Other purchases and                 (56,801)    (39,092)   (79,770)
    operating expenses
    Taxes & fees                         (6,620)     (3,387)   (16,078)
    Payroll                      17     (20,297)    (14,165)   (30,133)
    Amortisation                        (35,258)    (16,222)   (76,516)
    Depreciation of exploration         (56,472)    (24,859)   (67,076)
    and production assets
    Provisions and impairment            (7,738)    (27,547)   (27,961)
    of current assets
    Reversals of operating                3,913      11,662     12,457
    provisions
    Income from sale of assets            3,068      19,024     19,041
    Other expenses                       (9,708)      5,332     (5,928)
    Operating income             19     (28,255)     (9,684)    95,511
    Gross cost of debt                  (35,669)    (27,093)   (28,665)
    Income from cash                      1,922      12,378     14,350
    Net gains and losses on              36,200      63,596     75,073
    derivative instruments
    Net cost of debt                      2,453      48,881     60,758
    Other financial income and          (27,419)    (66,985)   (65,648)
    financial expenses
    Financial income (loss)      20     (24,966)    (18,104)    (4,890)

    Income before tax                   (53,221)    (27,788)    90,621
    Income tax                   21      (2,906)     (3,916)   (37,810)
    Net income of consolidated          (56,127)    (31,704)    52,811
    companies
    Total share in net income    7       10,121       9,694      9,694
    (loss) of companies
    accounted for under the
    equity method
    Net income from continuing          (46,006)    (22,010)    62,505
    operations
    Net income from              18      (4,644)     84,515          -
    discontinued activities
    Net income of consolidated          (50,650)     62,505     62,505
    Group
    Net income - Group share            (50,650)     62,504     62,504
    Minority interests                        0           1          1

    Earnings per share           22
    Basic                                 -0.44        0.55       0.55
    Diluted                               -0.44        0.55       0.47

    Earnings per share from
    discontinued activities
    Basic                                 -0.04        0.74          -
    Diluted                               -0.04        0.74          -

    Earnings per share from
    continuing activities
    Basic                                 -0.40       -0.19      -0.55
    Diluted                                0.40       -0.19      -0.47

    * Adjusted for business activities sold.

    III - Cash flow statement

    In thousands of euros             Note  31/12/2009 31/12/2008* 31/12/2008
                                                                   published

    Consolidated income from                  (43,100)    (18,094)   100,315
    continuing activities before
    taxes
    - Net amortisations and                    10,450      73,712    132,480
    provisions (writebacks)
    - Unrealised gains and losses                (471)    (14,665)    (7,183)
    due to changes in fair value
    - Exploration posted as expense            53,823      14,072     56,622
    - Calculated expenses and income            2,060       1,677      1,677
    related to stock options and
    similar
    - Other calculated income and                (547)     25,477     25,477
    expenses
    - Gains and losses from sales of              167     (24,488)   (24,505)
    assets
    - Share in income (loss) of           7   (10,121)     (9,694)    (9,694)
    companies accounted for under
    the equity method
    - Treasury income                                                (14,811)
    - Other financial items                       778         301      3,412
    Cash flow before tax                       13,040      48,298    263,789
    Tax paid                                   (4,662)     (4,266)   (17,564)
    Change in WCR related to                   44,965       5,497    (53,410)
    operations
    - Trade receivables                       (19,318)       (707)    11,001
    - Trade payables                           39,553      10,935    (11,725)
    - Inventories                                (988)     (1,130)    (2,094)
    - Other                                    25,718      (3,601)   (50,592)
    NET CASH FLOW FROM OPERATING               53,343      49,529    192,815
    ACTIVITIES
    Outflows for acquisitions of tangible    (384,556)   (381,297)  (540 627)
    and intangible assets
    Receipts from sales of tangible            77,739           7      4,106
    and intangible assets
    Outflows for acquisitions of              (15,135)       (919)      (919)
    financial assets (unconsolidated
    securities)
    Inflows from sales of financial              (399)          0          0
    assets (unconsolidated
    securities)
    Acquisition of subsidiaries               (13,933)        (18)       (18)
    Increased stake in companies                6,861       8,932      8,932
    accounted for under the
    equity-method
    Change in loans and advances                  840      (5,583)    (6,000)
    granted
    Other cash flows from investing               573         300        105
    activities
    Net inflows from business            18   457,240     (35,306)         -
    activities sold
    NET CASH FLOW FROM                        129,230    (413,884)  (534,421)
    INVESTINVESTING ACTIVITIES
    Amounts received from                       6,222         439         62
    shareholders during capital
    increases
    Dividends paid                            (40,045)    (56,812)  (137,080)
    Inflows related to new loans              285,829       1,086     11,847
    Interest paid                               (778)        (301)    (3,413)
    Interest received                                                  14,811
    Loan repayments                         (211,176)     (51,071)   (22,230)
    Treasury share acquisitions                 7,352     (33,884)   (33,884)
    NET CASH FLOW FROM FINANCING               47,404    (140,543)  (169,887)
    ACTIVITIES
    Impact of foreign currency                  8,872        (713)     5,882
    fluctuations
    NET INCREASE (DECREASE) IN CASH           238,849    (505,611)  (505,611)
    FLOW
    Opening net cash and cash                 188,695     694,306    694,306
    equivalents
    CLOSING NET CASH AND CASH            12   427,544     188,695    188,695
    EQUIVALENTS

    * Adjusted for business activities sold.

The Group consolidated financial statements are available on the Company's website: http://www.maureletprom.fr

This press release may contain forward-looking statements with respect to the financial condition, results of operations, business, strategy and plans of Maurel & Prom. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. These forward-looking statements are based on assumptions which we believe are reasonable but that could ultimately prove inaccurate and are subject to a number of risk factors, including but not limited to price fluctuations in crude oil; exchange rate fluctuations; uncertainties inherent in estimating quantities of oil reserves; actual future production rates and associated costs; operational problems; political stability; changes in laws and governmental regulations; wars and acts of terrorism or sabotage.

             Maurel & Prom is listed for trading on Euronext Paris -
                      Compartment A - CAC mid 100 Index

             Isin FR0000051070 / Bloomberg MAU.FP / Reuters MAUP.PA

                               Upcoming meetings:

    08/04/2010 Presentation to analysts at 10 a.m.

    06/05/2010 2010 Q1 Sales, after market

    20/05/2010 Shareholders' Meeting

    For more information: http://www.maureletprom.fr

    Communication:

    INFLUENCES

    +33(0)1-42-72-46-76, [email protected]

SOURCE Maurel & Prom

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