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CEO's Message

2020 was a transformational year for Forza Petroleum. The very significant fall in the price of oil in March 2020 led the Corporation to take immediate steps to reduce costs and to preserve capital by suspending capital expenditure, reducing head office headcount and temporarily shutting in some production in order to optimise economics. 2020 saw a change in control of the Corporation and a new name, Forza Petroleum. The Corporation was also able to settle $80.5 million in borrowings in full, and to eliminate $30 million in near-term minimum exploration drilling obligations, by transferring the Corporation’s interests in the AGC Central exploration license.

 

With a lean organization focused on the Hawler license area and a rebounding oil market, we are excited about the opportunity that our 2021 work program provides to increase production and to better define the remaining development potential of the four fields in the Hawler license area. The year started with the successful Zey Gawra-5 now producing from the Tertiary reservoir of the Zey Gawra field, a formation which had no oil reserves attributed to it at December 31, 2020. Later this year, we will drill the Tertiary reservoir of Banan field east of the Great Zab river. Although oil reserves were attributed to the formation at December 31, 2020, this will be our first well targeting the formation and we look forward to incremental production from the well contributing to increasing production rates during 2021. Planned completion of the Ain al Safra-2 well in the Triassic reservoir will allow us to evaluate the potential of deeper resources in a geologic region seeing increased activity in adjacent blocks.

 

It is noteworthy that higher oil prices since the start of the year allow us to forecast that our work program can be funded entirely from internally generated cash flow.

 

We look forward to implementing our plans safely in 2021 and to higher production from the Hawler license area.

 

Vance Querio     

Chief Executive Officer     

March 18, 2021