Aabar Reports Strong 2Q07 Results as Oil Production Climbs

Aabar Petroleum say that net revenues in the second quarter 2007 climbed more than twofold to AED 378 million from AED 186 million in the same period a year ago following a sharp increase in the group’s oil production at its Southeast Asia operations.

Operating profit jumped to AED 160 million from AED 29 million a year ago. Aabar reported a net profit to shareholders of AED 23 million for the quarter, with basic and diluted earnings per share from continuing operations of 2.1 fils.

“Our operations have performed very well this year and it is very satisfying to see this reflected in our financial performance. Oil production has almost doubled since the end of 2006 as we press on with the further development of the Jasmine field in the Gulf of Thailand, and we continue to have good exploration success. I am confident that Aabar now has the foundations on which to build its exploration and production business with planned expansion into the Middle East and North Africa,” said Sohail Al Mazrui, Aabar’s Chairman.

Net oil production through Aabar’s Pearl subsidiaries averaged 19,451 barrels of oil per day (“bopd”) in the second quarter, up from 17,275 bopd in the first quarter of the year. The company brought on stream a second production platform, Jasmine B, in January at the Jasmine field in Block B 5/27 in the Gulf of Thailand. A third facility, Jasmine C, commenced operation in May.

Aabar’s drilling division Dalma added one new rig to its fleet in Saudi Arabia in April, bringing the number of operating rigs in the second quarter to 20. Two other rigs are on order and expected to be delivered in the third quarter 2007 to Algeria, where they will be contracted to RepsolYFP.

Following Aabar’s announcement on 29 July 2007 regarding an agreement for the sale of Dalma pending shareholders’ approval, Dalma has been classified as a discontinued operation in the second-quarter financial report. The consolidated results for the year-ago period have been restated. Earlier Dalma, when it was a continuing operation, contributed approximately 22-23% of Aabar’s total net revenue.