Incremental confirms strong balance sheet

Oil production company Incremental Petroleum Ltd released its first preliminary final report covering the three month operating period ending 31 December 2005.
The company confirmed it had been able to build and maintain a strong balance sheet since listing in October 2005.
The preliminary final report confirmed that Incremental has no borrowings and $11.3 million in working capital. Earnings per share were 4.62 cents.
For the three months operations, revenue was reported as $9.99 million, with a Net Profit after Tax (NPAT) for the period of $3.1 million.
Incremental chairman Chris Cronin said that directors were delighted with the way the company has been able to establish financial stability so soon after listing.
"We have worked very hard to establish a sound financial position," he said.
"A maiden NPAT of $3.1 million and an Operating Cash Flow of $4.4 million after only 3 months operation of the Selmo oilfield in Turkey is an outstanding result that we are looking to build on in the near future.
"We believe the strong financial foundation we have established will be key to the success of this company over the long-term."
Mr Cronin said that in spite of a temporary reduction in production caused by extreme weather conditions in late January (previously announced on 1 February) there had been a full recovery and that cash flow for the months of January and February has continued to be very strong.
The building of a strong balance sheet means that the company is now perfectly placed to fund its growth strategy which is focused on the drilling of a number of short radius deviated production wells in the Selmo field in Q2 and Q3 of 2006.
"The success of the existing operations also allows the company to more actively consider new acquisitions should the right type of opportunities with acceptable economics arise," Mr Cronin added.
Mr Cronin also confirmed that technical work to support the issuing of a formal reserves statement in Q3 2006 remain on schedule.


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