The Sydney-based company today said sales of $69.6 million in the six months to December 31, 2006, underpinned an increase in half-yearly profit of $15.3 million, up “sharply” on the previous period losses.
AWE’s oil and gas production totalled 1.91 million barrels of oil equivalent.
It said its production rates are expected to remain strong as the BassGas project in Bass Strait finishes commissioning and ramps up to steady production in the current half year. AWE holds a 30% stake in permits T/L1 and T/RL1 in the project.
The company said underlying performance of the oil and gas reservoirs at BassGas and its Perth Basin-based Cliff Head project was good “although less than optimal performance of the production facilities was slightly disappointing”.
AWE has a 27.5% interest in the Cliff Head oil project.
Things are also looking good for AWE across the Tasman.
The New Zealand-based Tui oil project, in which it holds 42.5%, is expected to start oil production by June 30, providing further output growth.
“The Tui area development is the key part of the current Taranaki basin activity, but at least three further exploration wells (Hector-1, Taranui-1 and West Cape-1) are planned in the current campaign, which extends throughout the first half of 2007,” AWE said.
“AWE retains a high quality stake in all of these prospects, which will result in substantial value growth in the event of success,” the company said.
The company said in the half it had “strengthened” its financial situation by consolidating its project loans into a single corporate debt facility, improving the flexibility of future funding and the level of available cash.
“The AWE board and management is optimistic about the future and the company remains well funded for the next stage of growth, particularly following the recent debt restructuring, with scope for continued high returns for our shareholders,” it said.
“The financial performance of AWE in the first half was very pleasing and with the development of oil production from the Tui oil project, we expect that performance to improve even further.”
