The US$6.2 million (A$8.25 million) increase was driven by new production from acquisitions made in the first half of the year and high West Texas spot oil and gas prices, the company said.

In addition, total gas production of 416,198 million cubic feet for the first half of the 2005/06 financial year has already surpassed the full year production of 299,000 mcf in 2004/05.

Meanwhile, total oil production of 214,677 barrels of oil for the first half of 05/06 represents 76% of the total oil production for the entire previous financial year.

“Production and revenue figures for the quarter were a satisfactory justification of the company’s policy of increasing its petroleum resources in the US by new acquisitions, and by ongoing exploration,” managing director Geoffrey Towner said.

Amadeus also experienced a 59% drilling success rate in the first half of 2005/06, with 10 out of 17 wells making discoveriees, it said.

The company said it made one major acquisition of oil producing assets during the period - an 85% interest the White Eagle project in Kansas, USA, which covers 18,240 acres.

Daily gross production at the time of acquisition was 740 barrels of oil per day. The acquisition also involved over 5 million barrels of oil reserves, as well as upside potential at multiple drilling locations.

Amadeus paid US$55.6 million (A$74 million) for the project using a combination of bank debt and equity raising.

The company also entered a contract with Wells Fargo bank during the quarter to hedge 75% of current production, starting April 1 and lasting two years.

The contract involves between US$52 and US$90 paid per barrel of oil for 614,400 barrels. In addition, gas will fetch US$8–US$20 per million btu for 1,045,800 million bt.