Petsec’s June Quarterly Report released today reported earnings before interest, taxes, depreciation, depletion, amortization and exploration expense (EBITDAX) of US$27.6 million (A$ 35.7m) for the six months to June 30, 2005.

This is well up on the EBITDAX from the US$8.8 million (A$12m) reported in the first half of 2004 and has already exceeded the US$25.8 million achieved by Petsec in the previous full year to December 31, 2004.

Net oil and gas revenue in the June 2005 half year was US$31.6 million compared to US$11.9 million in the corresponding period in 2004, an increase of 167%.

Petsec’s Gulf of Mexico production of 4,637 million cubic feet of gas equivalent for the six months to June 2005 was a significant increase of 115% over production in the same period of 2004, said Petsec executive chairman Terry Fern.

“Gas prices remained firm in the second quarter – rising 4% to US$6.95 per thousand cubic feet and NYMEX gas futures are currently in excess of US$7.00 per thousand cubic feet for the remainder of 2005,” Fern said.

“We entered 2005 with a strong base from which to further expand our operations. Petsec’s current cash and reserves positions augur well for a continuation of that progress in 2005 and beyond.

“The company’s cash balance at 30 June 2005 was US$15.6 million compared with S$9.5 million at 31 December 2004, and we have achieved a 17% growth in reserves in the past six months.

“The Company’s 2P reserves were estimated at 34.5 Bcfe at the end of the latest quarter omprising a total of 27 Bcf in the Gulf of Mexico and 7.5 Bcfe in the Beibu Gulf in China.”

Fern said the opening six months of 2005 had delivered a very successful exploration program resulting in Petsec’s fourth US gas field discovery in three years with a total of 42 billion cubic feet of gas discovered.

“Following the success of the initial Main Pass 19 drilling, our capital expenditure in the second half will increase by some US$15 million to cover the development of the Main Pass 19 field and to commence a three well drilling programme from the Main Pass 19 platform,” he said.

Two wells will be drilled into Main Pass 19 and one well into the newly acquired Main Pass 18 block to the north in the December quarter of 2005, following establishment of the Main Pass 19 production platform.

Capital expenditure will be funded from existing cash reserves and cash flow generated from Petsec’s fields, which were expected to produce 7.5 to 8 Bcf of gas in the current calendar year, Fern said.