Stuart Petroleum's Net Profit Increases by 51%
South Australian oil producer and explorer, Stuart Petroleum Limited has announced a record net profit after tax of $13.2 million for the year ended June 30, 2008, a 51% increase over the previous year.
Commenting on the result, the Managing Director of Stuart, Mr. Tino Guglielmo said, "Record net profit was driven by record oil sales revenues for the year of $60.2 million, a 55% increase over the previous year on production of 569,562 barrels of Cooper/Eromanga Basin light sweet crude oil.
"Earnings per share of 19.5 cents increased by 51% over the previous year. EBITDAX of $70.01 per barrel increased by 62% over the previous year. Cash flow remains strong and with production from existing reserves, provides a solid platform to capitalize on the Company’s growth opportunities in the Timor Sea and
the Gippsland Basin."
Stuart has farmed-in to a 50% interest in a development project in the offshore Timor Sea permit AC/P33. This permit contains the Oliver Oilfield with potential recoverable oil and condensate estimated at 9.6 million barrels (Stuart share of a Mean Joint Venture volume of 19.3 million barrels).
Stuart has also farmed-in to a 50% interest to explore Gippsland Basin Permit Vic-P53. Drilling will commence shortly on this permit with the Bazzard 1 well, which will target potential recoverable oil of 100 million barrels. Production from its Cooper/Eromanga Basin oilfields will continue to provide Stuart with substantial cash flows.
Stuart's Cooper/Eromanga Basin Reserves totalled 2.6 million barrels at June 30, 2008, the same as the previous year end. Reserves additions from the Worrior 5 and Worrior 6 development drilling program plus the small discovery at Cleansweep 1 in PEL 100 offset production for the year. The reserves replacement ratio for the year was 101%.
As previously stated, the Company’s share of liquids contained in the Oliver Oilfield in the Timor Sea amounts to 9.6 million barrels. Engineering studies leading to development of these liquids are underway. Development will likely comprise a number of sub-sea completions producing to a floating production, storage and offloading (FPSO) vessel similar to those in operation at the nearby Jabiru and Challis/Cassini fields.
The Company will pay an unchanged fully franked dividend of two (2) cents per share, payable on September 19, 2008 to shareholders of record on September 10, 2008.