MANILA, Philippines—Publicly listed PetroEnergy Resources Inc. posted a 63-percent surge in its net income to $1.345 million in the first semester due largely to higher oil production and prices during the period.
In a report to the Philippine Stock Exchange, PetroEnergy explained that it registered total oil revenues of $6.688 million, up by 39.6 percent to $4.791 million year-on-year.
This increase can be attributed to the higher number of barrels produced (4.1 million barrels) at an average price of $111.15 per barrel as of end-June this year. In the first half of 2010, the company registered a production of 3.576 million barrels at an average price of $75.04 a barrel, the company explained.
PetroEnergy’s main source of revenues would be the oil fields in Gabon, West Africa, particularly Etame oil field, through its share in the oil production. The company currently holds a 2.525-percent working interest in the Etame Marin Production Sharing Contract.
Vaalco Inc., operator of this particular project, and the members of the consortium have already identified new wells that can be drilled in order to further increase production at the Etame oil field.
Operating expenses increased by 17.73 percent in the first half to $2.655 million due to higher royalty payments, brought about by higher production prices. General and administrative expenses almost doubled this year due to expenses incurred for the wind and geothermal projects.
Apart from its stake in the West Africa oil field, PetroEnergy also has interests in several projects. It currently holds renewable energy service contracts for its proposed wind farm projects in Sual, Pangasinan, and Nabas, Aklan, and for a planned 20-megawatt geothermal power plant on Mt. Makiling.
Through a vehicle company called Maibarara Geothermal Inc., PetroEnergy and its partners Trans-Asia Oil and Energy Development Corp. and PNOC Renewables Corp. expect the P2.8-billion integrated steamfield and power plant to start commercial operations by late 2013.
PetroEnergy also has interests in four petroleum service contracts namely SC 6A (Octon Malajon block) and SC 14C2 (West Linapacan), both in Northwest Palawan; SC 47 in offshore Mindoro; and SC 51 in the East Visayan Sea.