Friday 17 April 2020

Tulip Oil Holding B.V. (“Tulip Oil” or the “Company”) is pleased to announce the latest quarterly update on its oil and gas exploration and production businesses in the Netherlands and Germany.

COVID-19

The Tulip Oil Group and its business partners have taken measures in response to the COVID-19 outbreak including provisions for business continuity. The Group has experienced no business interruptions and staff are largely working from home. In light of the current low oil and gas prices as well as the COVID-19 pandemic, capital and operating expenditures have been reduced and are further being reviewed. With an average unit production cost under 10 $/BOE (incl. G&A), the Tulip Oil Group continues to generate strong margins despite the low prices.

Q10-A development by Tulip Oil Netherlands Offshore*

The Q10-A field produced 198 million standard cubic meters of gas during Q1, reflecting the natural pre-compression decline from 258 million standard cubic meters in Q4 of last year. The average realized gas price was 9.9 €/MWh during Q1 compared with 12.4 €/MWh in the previous quarter.

Production continues from all 4 wells and the calibration of the reservoir models is being progressed in preparation for 2 additional future Q10 wells. Steps are also being taken to enable compression for an increase in daily production at the appropriate time.

New drilling by Tulip Oil Netherlands Offshore*

Tulip Oil continues to mature additional new drilling targets predominantly to appraise reservoirs near the producing Q10-A field. These targeted reservoirs have been drilled historically and flowed gas to surface, similar to Q10 before the 2015 “discovery” well.

Onshore German oil development ‘Steig’ in Rhein Petroleum**

A phased development plan for Steig is being progressed and optimized. Static and dynamic reservoir models are under development. The project has been sanctioned to commence front-end engineering and permitting.