Fuelled by rising production and strong prices, second quarter operating revenue rose 41% on the previous three months to $133.5 million, forcing revenue for the first half up nine per cent to $161.6 million.

Additionally this record was achieved without contribution from gold production, following the sale of company’s interest in the Porgera Gold Mine at the end of 2003.

Excluding gold, revenues from oil and gas sales rose 34% from US$120.3 million in the first half of 2003 to US$161.6 million for the corresponding period in 2004.

“Company performance in the first half of 2004 was particularly strong, impacted by rising oil and gas production and strong oil prices. The company is now net debt free, having added nearly US$57 million in cash and having materially strengthened the Balance Sheet during this period.

“This is especially pleasing following the sale of the Porgera gold asset and the subsequent reduction in revenues, being more than offset by improved oil and gas production and high realised oil prices,” said managing director Peter Botten.

Oil and gas production for the second quarter was 2.78 million barrels of oil equivalent (boe), two per cent lower than in the first quarter but 13% higher than in the same period a year ago.

Production for the first half reached an all-time high of 5.61 million boe, up 13% from the first six months of 2003.

During the quarter, the Highlands Gas Project progressed to a position whereby the Joint Venture is ready to enter into FEED on the project, subject to confirmation of securing a conditional gas sales contract with one customer, thought to be the Gladstone Queensland Alumina Refinery.

“The company is now in an excellent position to fund the active oil development and exploration programs being undertaken, along with a number of gas commercialisation opportunities being very actively pursued,” added Botten.