OSL: US$113m profit

 OIL Search posted a net profit of US$113.5 million (K259 million) in the first-half of this year, up 6% from the corresponding period last year, managing director Peter Botten said.

He said the company recorded a strong operational and financial performance in the first-half of this year.

The increase in net profit to US$113.5 million was driven by lower exploration and tax expense, he added.

Botten said oil and gas production remained solid, declining only marginally from the first half of last year.

He said: “Production remains on track to finish the year within our guidance of 6.2 – 6.7 mmboe … major progress was achieved through the continued delivery of the PNG LNG Project which is now 90% complete. 

“The company also had two oil discoveries, at Mananda 6 in the PNG highlands and Taza 1 in Kurdistan, and we are now moving to further appraisal and development of these fields. 

“In addition, two gas discoveries were made from drilling in the Gulf of Papua, proving the potential of this area to contain gas in a newly defined play type. “

Botten said a further well, Kidukidu, is being drilled in the area.

Exploration success from Oil Search’s drilling programme resulted in a lower exploration expense of US$33.9 million (K77 million), compared with US$56.5 million (K129 million) last year, positively impacting our first-half profit.”

Oil Search’s total oil and gas production was 3.19 million barrels of (mmboe).

The company’s operating cash flow for the six months to June increased 8% on the first-half of last year, to US$214.3 million (K489 million).

The balance sheet remained solid, with US$292.1 million (K666.9 million) in cash and an undrawn US$500 million revolving facility, Botten said.