An Aberdeen oil company owned by businessman Ian Suttie has had its best year yet, with profits soaring through the £13million mark.
First Oil said that pre-tax profits in the year to the end of April 2009 jumped to £13.49million, compared with £4.99million for the previous 12 months.
Turnover almost doubled to £58.93million, against £27.22million in the preceding period.
Chairman Mr Suttie said the profit rise was despite the turmoil in the global economy and, in particular, the volatility in commodity markets.
The firm, founded in 1998, has stakes in 13 producing fields in the North Sea.
First Oil describes itself as the largest private, UK-owned company producing oil and gas in the North Sea.
It had proven and probable oil and gas reserves of nearly 29million barrels at the end of April.
Mr Suttie said: “Our major development West Don (in which First Oil has a 19.28% interest), came on stream successfully in the last week of the financial year, which will deliver further growth going forward.
“Equally significantly, First Oil made a gas discovery in the southern North Sea – Juliet – which has already been confirmed as commercial by operator GDF Suez.”
First Oil has increased its stake in Juliet to 48.44% and first gas is anticipated in 2011.
The chairman said that, with the first West Don producer on stream, First Oil production hit a record of more than 8,700 barrels of oil equivalent per day (boepd) on May 4, 2009.
He added: “In the year to April 2009, oil production was strongly underpinned by the Tweedsmuir North and South fields.
“Facility up-time issues of 2008 have been addressed, with up-time for the first six months of 2009 being excellent.
“Gas, which accounted for 55% of the year’s production, was produced from interests held in seven fields, with gas from the Wissey development (which came on stream in August 2008) being the greatest contributor.”
Mr Suttie said that, during the year, more than £50million had been re-invested in capital projects. The largest part of this was £33million towards completing the West Don development.
He said West Don had led to a step-change in production for the group.
The other major investment was £10million on the successful exploration of Juliet.
The chairman said the Fyne discovery (in which First Oil has a 25% stake) also advanced during the year with an appraisal well in August 2008 proving up a significant north-western extension testing at 4,000 boepd.
First Oil also has a 24% stake in the Alfa Sentral field. An application for development is expected to be made next year.
Regarding the outlook for this year, Mr Suttie said First Oil was well placed in the market and was always looking to acquire new assets, particularly where there was development expenditure required.
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