Petsec Marks Another Full-year Production Increase
Record operational results announced Thursday by Australian-based Petsec Energy Ltd further reflect the Company's expanding presence in the US Gulf of Mexico region.
Petsec Energy's full-year production increased for the fifth successive year, rising 27% to a record 8.2 billion cubic feet of gas equivalent (Bcfe) in the year ended 31 December 2006 from 6.5 Bcfe in 2005.
Net revenue jumped 45% to a record A$78.3 million (US$59.2 million) in the latest year and earnings before interest, taxation, depreciation, amortization and exploration expense (EBITDAX) was up 33% to A$59.6 million (US$45.0 million).
The average gas price received for sales during 2006 was up 14% to US$7.24 per Mcfe.
Petsec Energy's cash on hand at the latest 31 December balance date was A$33.8 million (US$26.5 million) compared with A$13.8 million (US$10.1 million) a year earlier.
The record results follow Petsec Energy's very high rate of exploration success during 2006, including 8 successful wells out of 9 wells drilled in the Gulf of Mexico. The Company also participated in the significant oil discovery at Wei 6-12 South in China during 2006, in a joint venture operated by ROC Oil. A declaration of feasibility on the China oil project is expected by the end of January.
Most recent Gulf of Mexico successes included the 100% discovery rate achieved with the four exploration wells drilled on the Company's new Mobile Bay leases. These gas discoveries are expected to be brought into production in the second and third quarters of this year.
The Company's exploration effort will gain additional momentum in the current year with between 14-20 wells expected to be drilled in 2007 across its USA onshore and offshore leases, and offshore south coast of China in the shallow waters of the Beibu Gulf. This compares with a total of 10 wells drilled in 2006 and 6 wells in 2005.
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- Petsec Energy Completes Acquisition of 29.75% Stake in Yemen's Block 7 (Oct 01)