The Company incurred $5.1 million of costs during the quarter to acquire 3-D seismic data in Angola and Gabon. As a company using the successful efforts accounting method, this amount was expensed in the quarter. First quarter 2007 earnings compared to net income of $11.0 million or $0.18 per diluted share for the comparable period in 2006. The Company sold 511,000 net barrels at an average price of $57.03 per barrel during the first quarter of 2007 compared to 512,000 net barrels at an average price of $60.93 per barrel in the first quarter of 2006.
Robert L. Gerry, III, Chairman and CEO stated, "The first quarter of 2007 began on a positive note with the startup of the Avouma and South Tchibala fields in January. These two fields are contributing approximately 6,500 BOPD to Etame Block production, lifting total block production to in excess of 20,000 barrels oil per day. As our cash flow remains strong, we are moving forward with the construction of the Ebouri platform and expect to bring that field on production in the second half of 2008.
We have begun exploration activities in earnest on our exploration blocks in Gabon (Etame -- offshore, Mutamba -- onshore) and offshore in Angola. During the quarter, we shot 400 square kilometers of new proprietary 3-D seismic data on the Etame Block to delineate several prospects and leads in anticipation of a 2008 drilling campaign. In Angola, we acquired a license to 1,000 square kilometers of 3-D seismic in the fairway of Block 5. Processing and interpretation of the seismic is underway. The $5.1 million expensed to acquire these data is an investment in our future efforts to build reserves through the drill bit."
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