Wednesday, oil and gas exploration and production company Meridian Petroleum Plc (MRP.L) reported a profit for the full-year ended December 31, 2008, compared to loss last year, reflecting a surge in revenues and gain on derivatives.
Meridian's maiden full-year profit before taxation was US$2.78 million, compared to pre-tax loss of US$3.49 million, a year before. The company attributed this success to the excellent performance of the Orion 36 well in Michigan combined with high US natural gas prices in the first half of the year.
Profit attributable to equity shareholders amounted to US$2.39 million or 13.1 US cents per share, compared to a loss of US$3.49 million or 23.5 US cents per share in the last year.
Operating profit totaled US$774 thousand, compared to a loss of US$3.54 million, a year ago.
Sales revenue increased 640% to US$18.06 million from US$2.44 million in the prior year.
The company recorded gain of US$652 thousand on hedging contracts in 2008 with additional future mark-to-market gains of US$1.77 million as on December 31, 2008.
The company said that Orion field performed exceptionally well and the acquisition of East Lake Verret substantially increased its reserves.
Compared to 2007, the company's natural gas production increased by 485% and oil production increased by 780%. Proved and Probable hydrocarbon reserves increased by 319% from last year due to the acquisition of East Lake Verret.
In June, Meridian completed the US$9.8 million acquisition of substantial working interests in the East Lake Verret field in Louisiana, with financing from a US$50 million facility provided by Macquarie Bank.
MRP.L is currently trading on London stock exchange at 43.75 pence, up 15.13% on a volume of 462 thousand shares.
For comments and feedback: editorial@rttnews.com