AWE Reports Record Profits
AWE's emergence as a significant oil and gas producer, has been underlined by a record profit of $A35.4 million for the year to June 30 from record oil and gas production of 3.93 million barrels of oil equivalent ("boe").
Sales revenue in the year to June 30 rose 490% to a record $143 million with strong production from three of the company’s cornerstone assets. Revenue is set to rise dramatically in the current year with oil production from the Tui Area oil project in offshore New Zealand recently starting.
Net Field Contribution (sales revenue less cash operating costs) for the company was also stronger, rising 454% to $113.6 million.
AWE’s balance sheet remains strong, with $65.6 million in cash at the end of the period and strong cashflow. A successful debt refinancing during the year also improved the level of available cash.
Record production of 3.93 million boe, a rise of 310% over the previous year, followed the successful commissioning of the BassGas project and strong production rates from the Casino gas and Cliff Head oil projects.
A high level of development and exploration expenditure led to a planned fall in cash levels during the year, with a closing cash balance of $65.6 million after expenditures of over $170 million.
The recent start of oil production and sales from the Tui Area oil project is expected to provide a substantial boost in AWE’s production, revenue and cashflow in the 2007-08 financial year.
A planned $53 million exploration drilling program will be undertaken in New Zealand, southern Australia and Indonesia in the 2007-08 financial year comprising several high potential targets mostly nearby to existing infrastructure or recent discoveries.
AWE’s Chairman, Mr Bruce McKay said:
"The 2007 financial results are a testimony to the dedication and enthusiasm of the AWE team over the past 10 years, led by Mr Bruce Phillips.
"Bruce’s departure as AWE’s managing director is a sad occasion for us, but the board and management remain very optimistic for the future of the company.
"The recent successful commissioning of the Tui Area oil project will provide substantial growth in revenue and cashflow for AWE in the 2008 financial year."
Departing AWE founding managing director, Bruce Phillips said:
"AWE is now well placed to become a major Australian oil and gas production company.
“The company has a strong balance sheet, a diversified asset base generating significant cash flows, good organic growth options and a very talented and dedicated work force.
"I look forward to watching the company grow to an entirely new level under the guidance of Bruce Wood as AWE’s new managing director."
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