The company’s $11.4 million net profit compared with a net loss of $4.46 million for 2003/04. It finished the year debt-free with cash reserves of $22 million and no oil hedging.

Meanwhile, oil sales revenue was up 334% at $25.1 million, generated from high oil prices and the production of 368,086 barrels of oil, up 209% from 119 041 barrels in the 2003/04 period.

Cooper was able to add 332,500 barrels of oil reserves to its total one million barrels, following development infill drilling and modest exploration success at Arwon in the Cooper Basin.

Cooper Energy CEO Michael Scott said the company aimed to drill between four and six exploration prospects each year in the Cooper Basin, but the number of wells drilled was restricted by the availability of drilling rigs.

“The acquisition of 663km of 2D seismic and interpretation of this seismic has resulted in a large portfolio of exploration leads and prospects distributed over Cooper Energy’s six permits in the area,” he said.

In the 2005/06 year, production volumes are expected to be sustained through upgrades to facilities on the Worrior and Christies oil fields, as well as additional infill drilling locations and production from the Arwon field, he said.

Further exploration and revenue from discovered fields in the Cooper Basin would remain important for the company as it looked for future growth opportunities, said Scott.

“Our primary growth strategy is to leverage off the strong production and cash flow generation of the Cooper Basin assets to build a portfolio of high-potential international oil and gas assets in North Africa and South East Asia,” said Scott

“A key focus will be the recently acquired Madura Block in Indonesia.”

Scott said the 45% stake in the onshore block, which covers the south of Madura Island, Indonesia, was the company's most significant recent acquisition.

It is surrounded by a number of oil and gas fields in the East Java Basin - including the newly discovered Jeruk, Oyong and Banyu Urip fields.

The first well is expected to be drilled in this block in early 2006 and will target a Kujung carbonate reef prospect in an oil play fairway.

Cooper has also recently secured a 10% interest in a Cambodian project and holds 100% of a North African block, while in Morocco the company is part of a joint venture in the Mediterranean Sea.