Interra Resources posts sharp improvement in Q2 net earnings

A STRONG focus on production from existing wells and exploration for new sources powered oil and gas firm Interra Resources to record second-quarter earnings.

Net profit soared more than eight-fold to US$4.45 million from the same period last year while revenue rose 94 per cent to US$13.76 million.

Gross oil production for the three months to June 30 more than doubled to 191,895 barrels compared with the same period last year. This increase was mainly due to higher contributions from the Tanjung Miring Timur oil field in South Sumatra, Indonesia, which has attained consistent flow rates in excess of 1,000 barrels a day.

Interra added that production gains from drilling at Yenangyaung and Chauk fields in Myanmar helped boost its results.

Chief executive Marcel Tjia said in a statement on Monday: "We are pleased that [the drilling of new wells has] resulted in the significant increase in production across all our oil fields in the latest quarter.

"In Myanmar, we are the number one onshore oil producer and expect to continue this strategy as part of our goal to take the company into the next phase of growth."

The company also announced yesterday that Goldpetrol Joint Operating Company - a partner firm in which it has a controlling interest - has started drilling works for a development well in Myanmar's Chauk field.

Work is expected to be completed in six weeks, allowing the well to contribute to the firm's production from its other oil wells in the area.

Earnings per share for the second quarter was 0.998 US cents, up from 0.172 US cents a year earlier, while net asset value per share was 17.2 US cents, up from 15.9 US cents as at Dec 31 last year.

Interra shares closed down one cent at 46 cents at the end of the trading day.