In its quarterly report, Drillsearch yesterday attributed the shortfall to lower than expected output from some new wells, as well as heavy rainfall and delays tying in wells while waiting for equipment.

As a result, the Perth-based company predicted its 10% share of Tintaburra oil output would be 120,000 barrels in calendar 2007, about 110,000 bbls less than originally forecast.

“Pressure maintenance by water injection has recently commenced at Endeavour and Mulberry fields and Drillsearch is optimistic that its current conservative estimates will be exceeded,” it said.

“The results of this pressure maintenance are being monitored and appear positive but it is still early days.”

Unlike Tintaburra, the Naccowlah Block in ATP299P has been producing better results than expected, said Drillsearch, whose share of output is expected to be about 20,000 bbls in 2007.

Across all of its operations, Drillsearch said it had achieved record production and revenue of $8.76 million in 2006-07, thanks to a stronger Australian dollar against the US dollar.

“Since revenue is received in US dollars, this appreciably offsets higher product prices,” it said.

“Drillsearch’s Canadian operations were similarly impacted by appreciation of the Canadian dollar against the US dollar.”

During 2006-07, Drillsearch participated in drilling 95 wells in the Cooper Oil Project, operated by Santos.