Takeover target Incremental Petroleum Ltd has upheld its advice to shareholders to take no action on Cooper Energy Ltd's offer, as its posts an 18 per lift in revenue for the September quarter despite falling oil prices.
Over the three months to the end of September, Incremental recorded an 18 per cent increase in production to 134,234 barrels with an average price of $US109 per barrel.
This compares to the June quarter's 113,454 barrels with an average price of $US118 per barrel.
"Although $US denominated oil prices fell by 8% in comparison with the previous
quarter, $A softening against $US resulted in little change in the average $A price," Incremental said.
"Accordingly the 18% increase in production translated to an 18% increase in $A denominated revenues compared with the previous quarter.
"The main reason for the production uplift is that Incremental has been successful in unlocking the potential of the inclined wells drilled in 2008, together with successful well work-over operations."
Meanwhile, Incremental said it will soon release its target statement in response to Cooper's hostile takeover offer.
Cooper is offering 3.1 shares for each Incremental share or 50 cents cash and 1.9 of its shares for every Incremental share.
