OREANDA-NEWS. In the second quarter 2014, Brent averaged USD 109.7 per barrel, up 1% from USD 108.2 in the first quarter. The selling price of the Mandji and Rabi Light crude oil grades marketed by Total Gabon averaged USD 104.9 per barrel in the second quarter, also up 1% on the first-quarter average of USD 104.2 per barrel.

Production

Total Gabon's equity share of operated and non-operated oil production1 rose by 2% to 57,900 barrels per day in the second quarter, versus 57,000 barrels per day in the first quarter. The increase was mainly attributable to the better availability of compressors on Gonelle, Barbier and Anguille.

Revenues

Second quarter revenues stood at USD 490 million, a 64% increase from USD 299 million in the first quarter, thanks to a 55% rise (1.55 million barrels) in volumes sold, a 7% increase in swaps with partners (USD 20 million) and a 2% rise in third-party services (USD 8 million).

Funds Generated from Operations

Funds generated from operations amounted to USD 217 million in the second quarter, down 7% from USD 233 million in the first quarter, mainly due to higher operating costs (booking of special items). The increase in revenues in the second quarter was offset by fluctuations in inventory.

Capital Expenditure

Capital expenditure totaled USD 224 million, versUSD 138 million in the first three months of 2014. Outlays during the period mainly concerned:

Completion of the Anguille Phase 3 integration project.

Leasing of a pulling unit and the start of a well workover campaign.

3D ocean bottom node (OBN) seismic acquisition on Torpille.

Net Income

The decrease of net income from USD 67 million in the first quarter to USD 50 million in the second quarter was chiefly due to higher special items of operating costs.

First-Half 2014 Results

Selling Prices

Brent averaged USD 108.9 per barrel in the first half of 2014, up 1% from USD 107.5 in the prior-year period. The selling price of the Mandji and Rabi Light crude oil grades marketed by Total Gabon averaged USD 104.6 per barrel in the first half, up 2% from USD 102.2 a year earlier.

Production

Total Gabon's equity share of operated and non-operated oil production1 averaged 47,700 barrels per day during the first half of 2014, virtually unchanged from 47,600 barrels per day in the first half of 2013. Production increased due to the start-up of additional wells as part of Phase 3 of the Anguille field redevelopment and optimization of existing wells on Anguille, Torpille and Girelle. This was, however, offset by the loss of production that resulted from the unavailability of compressors on Gonelle, Barbier and Anguille as well as pumps on Atora.

Revenues

Revenues in the first half amounted to USD 789 million, down 1% from USD 801 million in the prior-year period. The main reasons were a 6% decline (480,000 barrels) in the amounts sold over the period and reduced third-party services, which were lower 1% (USD 7 million). These factors were partly offset by a 3% increase in both the selling prices of the crudes marketed (USD 3.1 per barrel) and crude swaps with partners (USD 23 million).

Funds Generated from Operations

Funds generated from operations totaled USD 450 million in first-half 2014, down 11% from USD 503 million in the prior-year period, mainly due to higher operating costs stemming from:

Booking of special items in the first half of the year.

Major well servicing work involving the Constellation rig on Hylia and Anguille.

A significant increase in the price of industrial gas oil since January 1, 2014.

Capital Expenditure

Capital expenditure stood at USD 362 million, down 7% from USD 391 million in the first six months of 2013. This was mainly attributable to a decrease in exploration spending, which in 2013 mainly consisted of the drilling program on the Diaba license.

Net Income

Net income amounted to USD 117 million in the first half, versUSD 149 million in the prior-year period; this was mainly attributable to higher depreciation and amortization costs related to the commissioning in 2013 of the AGMN platform, power plant, pipelines and other installations for Phase 3 of the Anguille field redevelopment and to higher operating costs stemming from special items and major well servicing work.

First-Half 2014 Highlights

Annual Meeting of Shareholders and Dividend

At the Annual Meeting in Libreville on May 28, 2014, shareholders approved the payment of a 2013 dividend of USD 34.00 per share, corresponding to a total payout of USD 153 million for the year.

The dividend was paid on June 16 in an equivalent amount of €24.99 per share, based on the European Central Bank's rate of €0.7349 per USD 1 on May 28, 2014.

Exploration

3D ocean bottom node (OBN) seismic is being acquired on the Torpille field, with the two-fold goal of de-risking a satellite development — Torpille Nord Est — similar to that of Anguille, and appraising the potential of the pre-salt layer under the fields in the area.

Following a comprehensive reevaluation of the Diaba license's prospectivity, a new 3D seismic survey will be launched in August 2014, in the western sector.

On the Perenco-operated Nziembou license, the drilling of the prospect Igongo by the Caroil 7 rig is in progress and the results are expected in the next days.

Development

Anguille Field Redevelopment

Drilling of the Anguille redevelopment project's Phase 3 wells is continuing from the Anguille Marine Nord (AGMN) platform with the Setty rig.

Phase 3 will comprise a total of 21 wells drilled from AGMN. The first ten — eight producers and two injection wells — are now operational. Other Operated Activities

The major integrity works program initiated to extend the service life of the Grondin and Torpille platforms is continuing and the 18" pipeline to recycle Anguille gas was brought into service on June 12. This has already significantly reduced drawdown from the Torpille gas cap.

Tax Reassessment

The partial tax collection procedure related to the tax reassessment for the period 2008-2010 was suspended on March 5, 2014, Discussions with the competent authorities are continuing.