West Perth-based oil and gas producer Tap Oil Ltd has announced a net profit before exploration write-downs of $19.2 million, down from last year's $39.4 milion first half profit.
The news came as the company reported to the ASX that Singapore Petroleum Company had acquired a beneficial interest 4.7 per cent of the issued capital of Tap, or around 7.3 million shares.
The company partly attributed its profit downturn to lost production opportunities caused by mechanical downtime at its Woolybutt oilfield, but nonetheless secured $61.3 million in cash flows from operations, up from the $58.9 recorded during the previous period. Revenue, however, was down to $94.6 million from the $124.9 million recorded in the previous period.
Costs of sales were lower this year largely due to the company's reduced payments of petroleum resource rent tax, while exploration write-downs were $18.4 million, compared to the $16.5 million recorded last year.
An announcement from the company said that 2006 was a year of declining production and revenues, but the company anticipated its oil assets would continue to generate solid cash flows. The company will evaluate additional projects throughout the year.
