Production from the field totalled 500,000 barrels of oil during the year, while profit after tax was $12 million.

Of the operating cash flow, $11.9 million was re-invested into Selmo through the ultra-short radius drilling program and upgrades to the field infrastructure, while purchasing a third drilling rig helped improve operating capabilities, the company said.

Incremental is currently finalising its 2007 field development program, which will include horizontal wells designed to target both the upper and lower reservoirs.

In July, the company published its maiden reserves statement in which it estimated Selmo to contain 12.04 million barrels of 2P (proved and probable) reserves.

Elsewhere in Turkey during 2006, the company in partnership with Otto Energy had exploration successes at the Edirne gas project.

The joint venture estimates the project to contain 2 billion cubic feet of 2P reserves.