Perth headquartered energy company Arc Energy announced a half-year EBITDA result of $40.1 million for the six months to December 31 2005 - an increase of 34.2 per cent on the previous corresponding period.
Revenue was boosted by 15.7 per cent to $57.1 million for the period, due largely to an increase in the average price per barrel of oil from $54.62 to $74.42, the doubling of gas production and a more favourable exchange rate.
Net profit after tax for the half year rose by 20.2 per cent to $19.4 million despite a $3.7 million non-cash exploration expense charge.
Overall production increased by 18.5 per cent for the December half-year to 6,161 barrels of oil equivalent per day.
Production is expected to remain steady for the second half of the 2006 financial year although increased output at the Origin operated Jingemia oil field and the expected start up of the offshore Cliff Head oil field both offer upside.
Oil production dipped marginally during the half-year to 597,355 barrels net to Arc due to operational problems at Jingemia in the September 2005 quarter and declining production at Hovea in line with reservoir modeling predictions.
Arc managing director Eric Streitberg said that the half-year result highlighted the strength of the company's underlying oil business and the growing importance of its gas business.
"This strength provides the leverage for us to continue to explore new business development opportunities to expand and grow the company," he said
"With our very strong cash position this enables us to easily fund our existing operations, as well as being able to move swiftly to exploit other opportunities as they become available without funding or lender constraints."
The next phase of Arc's onshore drilling program in the Perth Basin is due to begin in July following mobilisation of a larger drilling rig, the analysis of drilling program data, and sign off on the required approvals.
A high impact offshore exploration program is also scheduled to start in May 2006.
In the December half the company also completed the integration of Voyager Energy assets following the merger of Arc and Voyager Energy, giving Arc an equity stake in all producing fields in the Perth Basin.
During the period it expanded its gas business through an alliance with Western Power and the renewal of existing contracts.
