The Perth-based junior recorded a profit of $11.1 million for the year ended 30 June 2005 on the back of increased commodity prices, positive results from its Halletsville South prospect in Texas and one-off revenue of $9.3 million from the sale of Australian Renewable Fuels.
After the sale, Amadeus maintains a 31.73%, or $40 million, interest in ARF.
Oil and gas production for the year totalled 282,000 barrels of oil equivalent (net) and 299 million cubic feet of gas (net), produced from the company’s 246 wells located across 15 counties in Texas and Oklahoma.
The company anticipates an increase in oil and gas production of more than 70% and 350% for 2006.
Amadeus has had success with eight out of 10 exploration wells at Halletsville South since a drilling program began last year.
It is also currently exploring three separate areas within the South Grosse Tete prospect in nearby Louisiana which could hold up to 5 million barrels of oil and more than 500 billion cubic feet of gas.
Amadeus recently boosted its presence in Texas, with the $41.8 million acquisition of the Grapeland, Shackelford/Stephens and Ford East projects. The fields are reported to have strong cash flows, substantial development upside and a proven reserve base.
In an Open Briefing interview published this morning, managing director Geoffrey Towner said surplus cash flow from the new acquisitions would be used for development drilling across the prospects in 2006.
"We have allocated $15 million to the development and wildcat exploration of 40 wells," he said.
"We have minimal debt obligations in the first 12 months – our current debt is just under $39 million – and our gearing level is very low. When you include the value of the two new acquisitions, our debt to asset ratio is less than 30%.
"We have no hedging in place at this stage however, we’re reviewing all our hedging options to prudently manage our debt in the event of an unexpected downturn in commodity prices."
Towner said the company will continue to review new opportunities in the long-term.
"The exploitation and development of all our fields will be our primary focus in 2006 and we will be looking at new acquisitions in the area as the opportunities arise," he said.
"This will result in a substantial increase in our reserve base and revenue, for this year and beyond.
"These efforts combined with our planned wildcat exploration activities in Texas and Louisiana make for a very exciting and rewarding year for Amadeus and our shareholders."
