Australia-listed ROC Oil Company Limited's net profit fell 28.3 percent in the first half of 2013 (1H 2013) to $20.5 million, compared to $28.6 million a year ago amid lower sales volume and weaker oil price, the company said in its release of the financial results for the six months to June 30.
Sales revenue declined $21.2 million to $114.1 million as sales volume dropped from 1.15 million barrels of oil equivalent (MMboe) to 1.1 MMboe, while average realized oil price before hedging was 11.9 percent lower at $104.20 per barrel.
The company's oil production for the half year was 6,478 barrels of oil equivalent per day (boepd), delivered primarily from the Zhao Dong field as well as trial production from Beibu Gulf, which commenced in late March. ROC has kept unchanged the 2013 production guidance at between 6,500 to 7,500 barrels of oil per day (bopd).
"The Company balance sheet has significant capacity to fund our regional value growth initiatives, with net cash of $58.1 million and a debt facility of $76.3 million which remains undrawn as of June 30," ROC said in the press release.
Meanwhile, the final phase of development drilling at the Beibu Gulf development on the WZ12-8 West field has been successfully completed. All wells are available for production, which is expected to ramp up to a plateau of around 15,000 bopd (gross) by the end of 3Q 2013.
Separately, work on the Balai Cluster risk service contract (RSC) off East Malaysia by BC Petroleum (BCP) is progressing, with Extended Well Tests (EWT) through the Early Production Vessel expected to commence during 3Q 2013. Results from the EWT are expected during 4Q 2013 and BCP will work to finalize the Final Investment Decision by the end of the 2013.
ROC also indicated that seismic acquisition is underway across the 09/05 exploration licence in the Bohai Bay, off China. The seismic results will be used to high grade the exploration prospects within the license and the first exploration well within the 09/05 license is expected to be drilled in 2014. ROC also intends to complete the farmdown of its interest during 2H 2013.
Over in Myanmar, ROC recently prequalified for the onshore and offshore license rounds. The firm, encouraged by initial data reviews, plans to bidding in the license rounds, targeting a combination of field redevelopment and exploration licenses.
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