Tuesday 28th February 2012 1 Comment
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Pan Pacific Petroleum, the dual-listed minority shareholder in the Tui oil field, returned to first-half profit on rising global oil prices.
Tax-paid profit was A$1.9 million for the six months ended Dec. 31 from a loss of A$3.9 million a year earlier year when the company took a A$5.1 million charge to repair its Pateke 3H well, situated offshore in the Tui oil field. Sales rose 37 percent to A$10.8 million.
The Sydney-based company benefitted from an increase in the average oil price at US$115 a barrel up from US$62 a year earlier. Its efforts were also focused on maturing potential drilling opportunities in Vietnam and the joint petroleum development discovery between East Timor, Australian and New Zealand.
“PPP remains focused on acquiring new opportunities to further broaden the portfolio in the South East Asia and Australia-New Zealand regions,” it said in a statement to the NZX. “Finding opportunities that meet PPP’s selection criteria has continues to prove challenging. PPP is maintaining a strong commitment to acquiring quality assets.”
The hunt for new opportunities is important because reserves from the Tui field were substantially revised downwards last year, and total reserves remaining and attributable to PPP amount to 830,000 barrels. Production in the half year was 120,000 barrels.
The board made no mention of a dividend to shareholders.
Shares in PPP are currently up 3 percent, trading at 18 cents on the NZX.