Petrogas E&P LLC is a privately owned, limited liability company registered and incorporated in the Sultanate of Oman and engaged in the exploration and production of oil and gas reserves. The company is a wholly owned subsidiary of MB Holding Company LLC.
Petrogas E&P LLC is a holding Company for its subsidiaries in Oman and overseas, namely Petrogas LLC, operator of Block-7 in Oman, Mazoon Petrogas SAOC which holds our 50% interest in Block-5 in Oman through 50% stake in the operator Company Daleel Petroleum. Also through our Indian project office we manage three exploration concession being operator in one. Two more subsidiaries has been recently formed viz. Petrogas Malih which holds 50% interest in the block 45 & 48 we farmed-in and Petrogas Rima which holds 75% interest in the Rima Clusters (small field) recently awarded to us.

In addition to HR, Finance & accountancy, Technical services and the provision of Corporate Governance to its subsidiaries, Petrogas E&P is the home for a multidisciplinary team responsible for New Business development. (Organizational chart) (Organogram)

Petrogas E&P LLC’s current reserves and production are derived from 7 fields located onshore the Sultanate of Oman. At the end of 2007, Petrogas E&P LLC has net proven developed and undeveloped reserves (working interest basis) of around 35 million barrels. Production, during 2007, averaged 8,646 barrels a day on a working interest basis. In the same period, Petrogas E&P LLC’s turnover amounted to US$ 217 million (unaudited) with an average realized oil price of around US$ 66 per barrel. No oil price hedging was, or is, in place and Petrogas continues to realize the full benefit of high oil prices.

During 2007, Petrogas E&P LLC invested US$ 57 million in Capex (development and exploration work programs). At end 2007, profit from Operations was US$ 54 (unaudited) million and the Net Profit was US$ 52 (unaudited) million. Petrogas E&P LLC had long term debt of US$ 11 million and had US$ 6 million cash in the bank.

The latest estimates for 2008 show a higher level of production and increased revenue. Expenditure (Capex and Opex) are at US$ 178 million, up by some US$ 121 million, primarily in Block-7 & 5 due to asset maintenance and drilling and expenditure towards new acquisitions.