The Sydney-based company posted record revenue of $18.38 million ($15.99m in 2006) and earnings before interest, tax, depreciation and amortisation of $5.9 million ($3.49m).
It said it had achieved its major operational targets, including higher production levels, new wells and increased exploration activities, for full-year production of 412,420 barrels of oil equivalent – outperforming its previous forecast.
The increase was mainly attributed to an 81% increase of the combined Silver Springs and Waggamba production that more than offset natural production decline in Churchie and other areas.
The company said it also continued to advance its exploration and development programs, including drilling five new wells in Queensland, with three being completed for production.
Meanwhile in Mosaic’s Northwest Shelf permit, WA 208P, the Santos-operated Hurricane-2 oil appraisal well was drilled shortly after the end of the reporting period, with the successful confirmation of an oil leg to the Hurricane-1 gas discovery increasing confidence in the permit’s prospectivity.
In Papua New Guinea, Mosaic is participating in a 2D seismic acquisition program over the Kimu structure in PRL-8, as a forward step towards gas reserves certification for potential participation by the Oil Search-operated joint venture in an LNG project.
Mosaic chairman David Herlihy said the results were further evidence that the company remained a cost-efficient producer and operator at its Surat-Bowen Basin assets.
“The results illustrate a solid growth in the company’s financial performance, and exceed previous forecasts,” he said.
“The company has delivered on all of its main financial and operational targets, including production volumes, revenues and profitability.”
He said the record total group revenue was achieved following higher total production and higher realised gas, oil-condensate and LPG prices.
This outcome was achieved despite various interruptions of gas supply at the company’s Queensland operations during the year.
Herlihy said recent tightening of the eastern Australian gas market had provided gas price “uplift opportunities” for sales on a spot-market basis, as well as for short- to medium-term contracts.
Mosaic had been able to participate in several spot sales for uncommitted gas during July and August and expected to be able to continue to do so, should spot sale demand remain strong, he added.
Mosaic has also completed a comprehensive technical and economic review of its remaining exploration and development drilling opportunities in its Surat-Bowen Basin permits.
It has identified “a substantial number” of drilling targets for a planned multi-well drilling and seismic program to run initially for a three-year period.
This was designed to accelerate appraisal and development of the company’s uncommitted gas reserves and resources.
Mosaic also continues to evaluate new venture opportunities as part of its strategy to develop new project areas, including international opportunities, Herlihy said.
