Production was shut-in for most of the December quarter due to the effects of category five Hurricanes Katrina and Rita, the Sydney-based company said in its latest quarterly report.

The 502% jump in production was also reflected in the company’s earnings before tax, depreciation and exploration write-downs, which sharply rose from $US2 million ($A2.7 million) to $14.3 million in the March quarter.

Petsec’s reserves at the end of the three months also increased to 56Bcf of gas from 38.5Bcf on December 31. This follows a successful four-well drilling program at the company’s Main Pass 19/18 leases, which discovered 15-18Bcf of gas and 1.1 million barrels of oil.

Cash at the end of the quarter was $32.3 million compared with $10.1 million in December, after the company raised $A29.25 million in a share placement.

Petsec said another highlight during the quarter was at the March 2006 MMS Central Gulf of Mexico Lease Sale, in which it was the highest bidder on four further leases – Main Pass 7 & 91 and Vermilion 41 & 148.

This morning, the company announced it has now officially been awarded five years of exploration rights in the Vermilion 41 and 148 leases.

Petsec has a 100% working interest and an 83.33% net revenue interest in each lease.

In total, the company has 19 Gulf of Mexico leases.