Highlights:
• Total production of 501,436 barrels of oil from second full year as an oil producer
• Sales revenue of $39.9 million (down 4% on last year due to natural decline)
• EBITDA of $18.2 million; NPAT of $10.7 million
• Re-investment of $8.8 million into further development of Selmo oil field
• Shareholders receive a maiden final dividend of 3 cents per share – a fourth return to investors since the company listed in 2005
• Dividend re-investment plan to be introduced
• Edirne gas project equity increased to 45%. Drilling to commence in March 2008
Australian oil and gas exploration and production company Incremental Petroleum today released their financial results for the year ended 31 December 2007, and announced a maiden final dividend of 3 cents per share for shareholders.
Non-executive Chairman Chris Cronin said this was a very good result.
“Operationally the Selmo oil field is very profitable and cash flow positive. Early results from recent development drilling currently underway on the field are very encouraging. A continuation of current oil prices and strong production performance should deliver substantial returns to shareholders in 2008.
“During 2007 we made major upgrades to the Selmo facilities to bring the field’s surface infrastructure to world-class standard. These non-recurring upgrades are now substantially complete and will lead to efficiency benefits in the years to come.
“In addition, we are currently gearing up to drill a five well program at the Edirne gas project in Western Turkey. During the year we increased our interest in the Edirne project to 45%. The program aims to add to discoveries made in the 2007 drilling.
“We also continue to evaluate other investment opportunities in the oil and gas sector in Turkey and worldwide.
“The maiden final dividend is the fourth return to shareholders the company has delivered since listing, bringing total returns to shareholders to 14 cents per share. We are committed to sharing the company’s success with the people who support it and are proud of our dividend paying track record. We will be introducing a dividend re-investment plan to assist shareholders who want to purchase more Incremental shares using their dividend entitlements.”