"Projections for gross PNG oil production made in 2003 for the 2006 year showed a steady decline to a level around 28,000 bopd," managing director Peter Botten said in the company's annual report.
"Through the excellent work of our field teams, coupled with targeted investment, the production outlook from these fields in 2006 is in excess of 60,000 bopd, a clear case of value added to our business at a time of high oil prices.
"The opportunity set for further production enhancement at the beginning of 2006 was larger than the previous year, underscoring our view that there are still material reserves to be found and real potential for production acceleration."
Botten said the company would return to the exploration game with renewed vigour, with drilling to include "higher risk, higher reward wells".
"Exploration drilling has played a back seat role in recent years, with funds and available rigs being diverted towards exploiting the many highly value-accretive and low risk development opportunities," he said.
"Considerable work has, however, been undertaken to mature our PNG exploration prospect inventory, and we are now in a good position to re-commence exploration in PNG.
"We plan to drill at least three wells during 2006, which will comprise a mix of medium-sized, moderate risk targets close to existing infrastructure (for example, Arakubi) and higher risk, higher reward wells such as NW Paua, in an ongoing program extending into 2007 and 2008."
Botten said the company would also undertake a renewed focus on identifying significant additional gas reserves with a target of a contractable resource of 3 trillion cubic feet of gas by 2008.
He said export markets for gas had been identified in New Zealand where CNG technology was being advanced.
