Soco H1 profits rise 72% on strong oil prices, volumes

UK oil producer Soco International PLC saw profit jump 72% in the first half, propelled by sky-high oil prices and increased volumes. Net profit in the six months to June rose to US$15.1 million from US$8.8 million, while revenue from continuing operations grew to US$38.8 million from US$27.5 million as gains from high prices more than offset the effect of cost inflation.
The group’s operating expenses rose to US$6.50 per barrel from US$4.0, largely due to higher fuel, labour and transport costs.
Oil production in the half-year rose 21% to 6,407 barrels per day.
Ed Story, the chief executive, gave an upbeat view of the future following its recent successes in Vietnam and the steady progress of its projects in West Africa and Yemen.
‘Soco is ideally positioned for significant additional reserve and production growth with the financial capacity to make it happen,’ he said.
It increased proved and probable reserves in Vietnam by 40%, equivalent to 25 million barrels as it finds more oil on the TGT field.
The TGT-2X well was tested at a flow rate of around 17,500 barrels of oil equivalent per day, while TGT-3X flowed 9,908 boepd.
The CNV field, also in Vietnam, is expected to start production next year.
In Yemen, the company said it plans to ramp up production there to over 50,000 bopd by end-2006.

 

Category: Business