The company recently reported a net profit of $9.6 million for the year to June 30, 2006, down from the $11 million posted in the previous year.
Since 2004, it has significantly expanded attributable production, operating cash flow, market capitalisation and the bank valuation of its assets.
Towner said he expects the company, which listed in 1996, to continue to grow.
“As far as we’re concerned, Amadeus has only just scratched the surface in adding value to our production, reserve and cash flow,” Towner said in a Corporate File open briefing.
“We have many growth opportunities to look forward to in the future as we aggressively continue to drill and explore our US assets.
“We expect a substantial increase in revenue this financial year.”
Australian-based Amadeus produces and explores for oil and gas in the United States, with its primary assets in Texas, southern Oklahoma and Kansas.
It has exploration and production leases spanning 35 countries, which it says offer “a multitude of opportunities” to further drill and develop.
For the year to June 30, 2006, attributable oil production rose 71% to 482,300 barrels while gas production jumped 264% to 1.1 billion cubic feet.
Towner said the growth in both oil and gas was achieved mainly through exploration success, with the company drilling 16 out of the 24 wells in the reporting period.
He said three acquisitions, including the Stephens/Shackelford and the Ford East acquisitions on July 1, 2005 and White Eagle on October 1 that same year also boosted growth.
A current shortage of drill rigs and skilled labour to operate the rigs, costs associated with exploration and developments are ever rising, he said.
But Towner is not too threatened, saying Amadeus’ US operators are constantly working on reducing operating costs and well efficiencies across all major production areas.
“On the White Eagle project in Kansas, we have successfully reduced water production and disposal and increased oil production by conducting polymer treatments on marginal wells, turning them into very successful producers,” he said.
Of all wells drilled, Amadeus says the Halletsville, Lavaca County project in Texas, where it holds a 25% interest, has played the biggest role in expanding the company’s production and reserves.
This year, the company drilled six deep oil and gas wells there with all wells intersecting good recoverable rates of hydrocarbons.
In its latest drilling update, it said the Trio Rheinstrom-1 had been cased to a depth of 7500 feet (2286m) for completion and production testing of pay zones, evident at a depth of 7300ft in the Middle Wilcox and 5900ft in the Upper Wilcox.
The Midcox sands, the primary objective of the well, were found to be of low permeability and largely water-bearing at the location.
It is due to be finished in the next four to six weeks.
Meanwhile, the company continues to report good results at its White Eagle project, where it holds a 79.89% interest.
Amadeus said the well was spudded on September 8 and has progressed to a depth of 2945ft as of yesterday.
It is the first of two initial wells to be drilled on the White Eagle area.
