Oil and gas operator BG Group revealed yesterday that pre-tax profits for the past quarter had nearly doubled to more than £1.3billion.
The results for the three months to June 30 were driven by higher gas and oil prices, production volume and increased liquefied natural gas margins.
Chief executive Frank Chapman said: “I am delighted to report that BG Group has delivered another strong business performance and continues to create material value through our exploration programme with successful results in Brazil, Algeria, Norway, Thailand, Trinidad and Tobago and the UK.”
The group said it had made significant progress in an expanded exploration programme, including a fifth exploration success in Brazil’s Santos Basin, finding both oil and gas. BG said that, in the UK, the recent appraisal programme undertaken at the Jasmine field (BG Group stake 30.5%) confirmed the presence of hydrocarbons in a separate structure to the north-east of the initial discovery well, which was drilled in 2006.
It added that the first Jackdaw appraisal well (BG Group 43.4% and operator) was successful in identifying additional reserves in a new and higher-quality reservoir section.
A sidetrack well has been started to appraise this discovery further.
On block 23/21, south of the Lomond field in the central North Sea, the Moth exploration well (BG Group 31.7%) had been successful.
BG said it would work with its partners to prepare a programme for the development of this discovery.
It said revenue and other operating income for the quarter rose by 49% on a year earlier to £3.216billion. Total operating profits increased by 92% to £1.43billion.
Pre-tax profits for the three months were £1.32billion, almost double the profits of £731million achieved a year earlier.
Dana Petroleum said yesterday following its annual meeting that 2007 had been another excellent year for the group, continuing its successful track record of year-on-year growth.
Chief executive Tom Cross said: “Dana delivered record production and profits in 2007 and is on target for an even stronger performance in 2008. The group is now producing from 30 oil and gas fields and undertaking three new field developments, which will come on stream from 2009.
“In addition, the company is working on a further 21 appraisal and potential development projects. 2008 will be the most active year of exploration in Dana’s history. Already this year there have been significant new oil discoveries at West Rinnes and East Rinnes in the UK and an important gas discovery at West el Burullus offshore Egypt.
“Rigs have been secured to drill a number of further wells in these particular areas and, in total, 11 wells are planned in the second half of 2008. The company is in a very strong financial position, with a high-quality and balanced portfolio of growth opportunities and an exciting drilling programme ahead.”