South Perth-based oil and gas company Cooper Energy Limited has posted an unaudited net profit of $9.4 million for the year ended June 30 2006, which the company attributed to buoyant oil prices and strong production.
South Perth-based oil and gas company Cooper Energy Limited has posted an unaudited net profit of $9.4 million for the year ended June 30 2006, which the company attributed to buoyant oil prices and strong production.
The company had posted a 30 per cent increase in oil sales revenue to a record $32.6 million, which the company said would enable it to generate record underlying earnings, with EBITDAX increasing by 41 per cent to $22.4 million.
At the 30 June balance date, Cooper's working capital position had increased by 11 per cent to a record $22.6 million. Accumulated profit increased by 200 per cent to $14 million.
Cooper chief executive Mike Scott said the company was well placed to further advance its international growth strategy in the light of the results.
The full text of the announcement is pasted below
Australian-based oil and gas company Cooper Energy Limited has benefited from buoyant oil prices and strong production, posting a 30% increase in oil sales revenue to a record $32.6 million and a $9.4 million unaudited net profit for the year to 30 June 2006. The strong financial result continues to underpin Cooper Energy's growth strategy, comprising both aggressive exploration drilling in the Cooper Basin and its entry into high-value international new venture opportunities.
Perth-based Cooper Energy said today that the strong oil sales revenue result enabled the Company to generate record underlying earnings, with EBITDAX increasing by 41per cent to $22.4 million (2005: $15.9 million).
After including the costs of an aggressive exploration and development program during the year, the Company reports a pre-tax profit of $13.4 million (2005: $13.5 million) and a net profit of $9.4 million (2005: $9.4 million). At the 30 June balance date, Cooper Energy's working capital position (cash plus debtors minus creditors) increased by 11 per cent to a record $22.6 million. Accumulated profit increased by 200 per cent to $14 million.
"With no debt and a record cash position of $26 million, the Company is well placed following this excellent financial result to progress its exploration, development and production plans and to further advance its international growth strategy," said Cooper Energy's CEO, Mike Scott.
The record oil sales revenue result was generated from the Company's production of 354,086 barrels of oil (2005: 368,086 barrels), coupled with continuing buoyant oil prices averaging A$92 per barrel of oil for the financial year. Cooper Energy shares in production from the Worrior (COE 30 per cent), Christies (COE 25 per cent), Sellicks (COE 25 per cent) and Silver Sands (COE 25 per cent) producing oil fields in South Australia's Cooper Basin, from where crude oil is trucked to offloading terminals at Tantanna and Moomba. The Callowonga oil field (COE 25 per cent) is scheduled to be on line towards the end of 2006.
Mr Scott said 2005-2006 had been successful from both a production and exploration/development perspective in the Cooper Basin, with development in-fill drilling at all three fields and exploration success with the Silver Sands-1 and Callawonga-1 wells. The Company recently announced a 50 per cent increase in its P50 discovered oil reserves portfolio to 1.2 million barrels following the Callawonga-1 discovery.
Cooper Energy's budgeted share of production for 2006-2007 is 275,000 barrels of oil, with a range of uncertainty between 250,000 and 360,000 barrels - the final actual production volumes subject to a large number of controllable and uncontrollable variables.
Mr Scott said the Company has a very active exploration program with 3 wells scheduled to spud during September and October plus a further 3 wells expected to spud in the December and March quarters. The wells are targeting undiscovered reserves in excess of 200 million barrels of oil. "Ideally we would like to drill 4-6 exploration wells per year from our very large exploration leads and prospects portfolio," he said. "Exploration in the Cooper Basin will continue to be important for us as the production revenue from new discoveries in this region underpins our fundamental value and funds our international exploration efforts and entry into quality new opportunities."
"Our focus continues to be shallow shelf and onshore opportunities in North Africa or South East Asia, preferably located close to existing infrastructure," he added. "We aim to secure high value equity positions and add further value to these positions by utilising the skills of our technical team - several of whom have extensive experience operating in these regions."
"Our primary growth strategy is to leverage off the strong production and cash flow generation of the Cooper Basin assets to build a portfolio of high-potential international oil and gas assets in North Africa and South East Asia," Mr Scott continued. "We have an exciting 2006-2007 drilling program ahead of us and, with a bit of exploration luck, we hope to further increase our value for the benefit of all our shareholders."
