Aberdeen-based First Oil said yesterday it had another successful year in the 12 months to the end of April.
The largest privately owned UK company producing oil and gas in the North Sea, whose annual profits dropped slightly to less than £13million, was confident it would continue its growth this year.
Technical director Steve Bowyer said: “Despite a considerable drop in gas prices and increased operating costs, profits before tax were maintained due to increased production levels and the continued implementation of our prudent hedging strategy.
“We significantly enhanced our balanced portfolio of exploration and production assets through organic growth and acquisitions and during the year have delivered exploration success west of Shetland at Glenlivet and in the southern North Sea at Platypus.”
Chairman Ian Suttie, the multimillionaire Aberdeen businessman who controls First Oil, said: “We have successfully grown our portfolio in 2010. We will continue to progress our . . . exploration and development opportunities in 2011 while . . . seeking to acquire new assets, particularly where we can identify significant upside potential and can leverage our strong financial position.”
He noted that the field-development plan for Juliet had been submitted in the second quarter and the plan for the Fyne field was due for submission later this year, while proposals for a further West Don infill well were in progress and work continued on Glenlivet and Platypus.
He added: “Our forward investment programme should result in continued growth.
“On the acquisition front we are in the final stages of completing the farm-in to four exploration licences with Petro-Canada UK and are in advanced discussions to farm into a central North Sea development offering near-term production and reserves.
“We also look forward to the results of our efforts in the UK continental shelf 26th licensing round.”
First Oil submitted 15 applications for licences, six as operator.
The report showed that First Oil’s production for the year averaged 4,100 barrels of oil equivalent (boe) per day, up from 3,700boe the year before. Proven and probable reserves increased by 9% during the year to stand at 31.2million boe at April 30.
First Oil’s accounts show its turnover for the year was £62.98million, up from £58.93million the previous year. Pre-tax profits were £12.67million against £13.49million a year earlier.
The accounts also show that the unnamed best-paid director of the company received £283,000 in emoluments during the year plus pension contributions of £8,000 compared with £175,000 in emoluments and £8,000 in pension contributions the year before.