In its full year results released on Friday, Tap said Woollybutt oil production almost halved in 2006 to 550,000 barrels, down from 931,000 barrels the year before. Liquids production from the Harriet Joint Venture also dropped to 323,000 barrels of oil equivalent from 545,000 barrels in 2005.
Net profit for 2006 totalled $19.2 million, compared to $39.4 million the previous year.
Tap said record oil prices helped offset lower production to help it earn $94.6 million in revenue, down from $124.9 million in 2005.
Tap said recent developments at its Woollybutt and Harriet Joint Venture fields “demonstrate these assets are far from being at the end of their lives and growth potential remains.”
“These assets will be generating solid cash flows for some years to come, enabling Tap to pursue its new strategies,” Tap managing director Paul Underwood said.
But Tap said output rates continued to “exceed expectations” and predicted total production would have been about 110,000 barrels higher had it not been for “numerous unforeseeable mechanical interruptions.”
Despite the drops, Tap has upgraded its gross Woollybutt oil reserves by 10 million barrels.
Two development wells, Woollybutt-4H and 6, have been planned for drilling at the southern lobe, with first oil from this region planned for early 2008.
“In the Harriet JV, a number of new gas development wells were brought into production and the West Cycad oil well, previously reported as a failure, has just been developed with exceptional start-up rates,” Underwood said.
Underwood described the Amulet oil discovery, drilled by Tap and Kufpec last June as a highlight of 2006. Santos, which at the time decided not to participate, has elected to move back into the discovery by paying 15 times the cost of drilling the original discovery well.
Another highlight was the Tap’s push into South East Asia, with the establishment of numerous new strategic relationships, the company said.
The company also announced today that Singapore Petroleum Company had acquired about 4.7% of Tap's ordinary shares through nominee holders.
Tap said it would be seeking discussions with SPC as to its intentions in regard to this holding.
