Oil and gas group Gulfsands Petroleum (LON:GPX) saw net profits soar to $18.7m in the six months to June 30, up five times on the same period last year, as production levels from its flagship project in Syria continued to rise. Revenue during the period increased by 81% to $52.5m with average group working interest production topping 9,689 barrels of oil equivalent per day against 6,165 barrels in the first half of 2009. In Syria, working interest production in August averaged 9,600 barrels of oil per day against 8,255 barrels at the start of 2010.

The half year performance was boosted by a small profit from Gulfsands’ Gulf of Mexico operations, which last year delivered a loss. However, the group said it was still planning to sell those assets in order to focus on work in the Middle East and North Africa. In Syria, where Gulfsands owns a 50% share in Block 26, which boasts the producing Khurbet East and Yousefieh fields, two exploration wells and four development wells were drilled during the period, with three more expected in the second half. The company said it was also expecting to award a contract to build the Khurbet East central production facility by end of the year.

In Tunisia and Italy, where Gulfsands is buying into permits operated by ADX Energy, the company recently announced a gas discovery at the Lambouka 1 well in Tunisia. Work there is ongoing to overcome operational problem that are hindering detailed assessments of the size and viability of the discovery. Another well is scheduled on the permit later this year and the company said it was continuing to seek new business opportunities in Syria and elsewhere in MENA region. Click here to read a recent Stockopedia interview with Kenneth Judge of Gulfsands Petroleum.

Commenting on today’s results, Gulfsands' chairman, Andrew West, said: “During the first half of the fiscal year Gulfsands has consolidated a solid financial and strategic platform for its future growth. We will continue to maximise the value from our existing assets with a comprehensive drilling campaign in Syria over the next few months, whilst pursuing other opportunities to take the business to its next phase of strategic development.”

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