Drillsearch lifts FY net profit

Group flags growth as record total production and sales revenues boost earnings.

Drillsearch Energy (DLS) says it will continue to grow in the coming year after lifting full-year net profit on the back of its highest ever total production and sales revenues.

The group reported net profit attributable to members in the 2013 financial year of $45.1 million, up from $10 million in the prior year.

Revenue rose to $102.2 million in the year, compared with $22.4 million in the previous corresponding period.

Drillsearch declined to pay a dividend.

The group said the ramp up in oil production from the Western Flank Oil Fairway and the resumption of wet gas production from the Western Cooper Wet Gas project boosted its results. 

Managing director Brad Lingo said the group's ongoing strategy of increasing reserves, production and cash flow was key to growth.

Production guidance for 2014 has almost doubled to 2.3 to 2.5 mmboe, Mr Lingo said.

Capital investment expenditure for fiscal 2014 is expected to be $90 million to $110 million, broadly in line with previous guidance.

Of this, 50 to 60 per cent is expected to be spent on development activities and 40% to 50% invested in exploration work programs. 

The group says it will ensure disciplined cost management is applied to its growth programs.