Imperial Oil Reports First Half Results



Imperial Oil's Chairman and Chief Executive, Peter Levine, said: "In a short period of time Imperial has successfully acquired a solid asset base and moved into first production. We continue to deliver on our objectives and believe the next eighteen months an important stage in the company's development. We now have a solid base and a critical mass including the experience, capital and management expertise to take the business further forward.

This gives Imperial the capability of rapid expansion by acquisition as well as organic growth.

Turnover for the six months was £0.4 million (2005: £0)

Losses for the six months were in line with expectations at £3.9 million (2005: £1.9 million) being 9.69p per share (2005: 7.94p). Net assets at the period end were £181.9 m (2005: £18.9 million).

Exploration and appraisal expenditure for the six months was £18.1 million (2005: £8.6 million).

At the period end cash balances were £102.5 million (2005: £2.7million). There were no borrowings and nil gearing.

Taking into account the stage of Imperial's development, the Directors do not recommend the payment of any dividend.

Outlook

Next eighteen months significant stage of company development

  • Some 30 production/appraisal wells and 12 new exploration wells planned
  • Significant exploration upside
  • Production planned to significantly increase after new pipelines in place – summer 2007

Significant infrastructure works planned

  • Over 200km of pipeline to be constructed winter 2006 through summer 2007 linking in to Transneft system – tie-ins agreed

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