Group petroleum revenues for the half year increased to $3.6m, up from $2.5m in 2003. Total revenue from ordinary activities was $4.4, up from $2.8m in 2003.

Increasing group petroleum revenue and disposal of non-core assets significantly strengthened Drillsearch’s balance sheet and its net assets to $16.9 million, according to managing director Philip Kelso.

The company said its strategy was to increase reserves and production per share at a rate of 10-15% annually, using commercial and technical skills to continue creating value in the hydrocarbon business, while at the same time undertaking operations offering potential major upside with exposure to large target exploration plays.

Drillsearch has blocks in Australia, Canada and Papua New Guinea.

“Near field exploration and development drilling in the next few months should provide the basis for another increase in oil revenue in Australia through 2005 and an increase in group reserves,” Kelso said.

“Drillsearch anticipates that it will achieve increased oil production from the imminent seven-well oil appraisal and development drilling program in the Tintaburra Block, Queensland and additional revenues from the tie-in of gas at Kakwa, Canada. Drillsearch’s high impact exploration and appraisal effort will focus on the Bonaparte Gulf, WA.”