Higher oil, gas price contributes EMP?s net profit in 2006

JSX-listed oil and gas firm PT Energi Mega Persada (EMP) announced Thursday that its audited net profit for 2006 increase to Rp 203.0 billion (1US$=9,215) from a restated net profit of Rp 201 billion in 2005.

?A relatively flat top and bottom line was primarily driven by weaker volumes being offset by a significant increase in average price realizations on a ?barrels of oil equivalent? basis. Broken down by product, average oil and liquids price realizations were up 30 percent, whilst average gas price realizations were up 9 percent,? EMP said in release statement.

EMP had lower oil output of 9.9 million barrels of oil equivalent (MBOE) in 2006 compare 2005 output of 12.4 MBOE and gas production decrease of 36.4 BCF from 50.0 BCF in 2005.

EMP?s operating costs increase in both general and administrative (which rose by 27 percent interest costs (up 21 percent) reflecting a large increase in the level of development and funding activity at the both the operating and holding company levels.

According to EMP, total costs incurred relating to the mud volcano based on Lapindo Brantas? working interest up to December 31, 2006 were approximately $46m.

At the same time, 2006 was the most significant year in terms of capital investment in the company?s relatively short history with close on $200m being spent on exploration, appraisal and development drilling alone, EMP added. (denny)