In its quarterly report released today, Amadeus said net oil production for the nine months to March 31 of 351,419 barrels has already exceeded the prior full-year production of 282,574 bbls.

“If the March quarterly rate of oil production is sustained for a full 12-month period, it will equate to a rate of production in excess of half a million barrels of oil per annum,” Amadeus said.

The US-focused oil and gas company recorded 136,742 bbls of net oil production during the quarter, a 91% jump on the previous corresponding period.

Gas production during the quarter also rose sharply to 302,620 million cubic feet compared with 62,485mmcf in the March 2005 quarter.

Net gas production of 718,818mmcf for the nine months to March 31 has exceeded the prior full-year production of 298,670mmcf.

Amadeus said other highlights during the quarter included signing an interest rate hedge contract signed with Fargo Bank and two new 3D seismic exploration deals in Texas.

Despite a positive start to 2006, the company says a drill rig shortage in the region is hampering its exploration efforts.

“The excessive demand on drill rigs has slowed down the progress on budgeted exploration programs, but drilling over the quarter has resulted in two successful gas wells from two wells drilled in Lavaca County, Texas,” the company said.

“These two wells are expected to be completed for production during April, further contributing to the company’s gas production.”

In the nine months to March 31, 12 out of 20 exploration wells drilled for Amadeus were successful, reflecting an overall success rate of 60%.

Meanwhile, in Houston County, Texas, the company is about to complete its Pennington-2 well for production.

The well, which reached a total target depth of 6010 feet (1838m) on Saturday, encountered seven feet of net gas pay with 25% porosity and good permeability, Amadeus said.

Pipe has now been set and the well will be completed and start production within 30 days, as soon as a completion rig is available.

Covering 600 acres, the Grapeland field was discovered in 1947 and rapidly developed with a total of 29 wells drilled. Due to extremely poor production practices, lawsuits between its two partners, low oil prices and no gas market, the field was abandoned prematurely.

Independent engineering studies have indicated that the field had 12 million bbls of oil in place. Utilising a 30% recovery factor, the field should have 1.4 million bbls of oil yet to be recovered.

The Pennington-2 well is the first well to be drilled in the Grapeland field by Amadeus, which has a 53.5% interest, and its US-based joint venture partners.