Shares in Gulfsands Petroleum, the oil and gas production, exploration and development company with activities in Iraq, were down nearly 10% in early trading before recovering to close down 4.9%, following the announcement of its annual results for the twelve months ended 31 December 2011.
· Profit after tax up by 23% to $55.1 million (2010: $44.7 million)
· Cash from operating activities up by 34% to $94.3 million (2010: $70.2 million)
· Further part-disposal of US business realising aggregate cash of $11.0 million
· Free cash balances at year-end of $124.2 million (2010: $80.6 million)
- Group working interest production down by 17% to 8,542 boepd (2010: 10,308 boepd)
- Group 2P working interest reserves up by 34% to 76.3 mmboe (2010: 56.9 mmboe) of which 74.5 mmboe (2010: 53.6 mmboe) relates to its PSC in Syria
- Group 2C risked contingent resources of 13.0 mmboe
- Six exploration wells drilled in Block 26, Syria resulting in three discoveries
- Potentially commercial onshore oil discovery in Tunisia
- Maintain presence in Syria
- Consolidate position in Tunisia
- Build another viable non-Syrian business
As a consequence of the sanctions imposed on Syria by the EU, the Group declared force majeure in December 2011 on its PSC in Syria. This has had a significant impact on the financial statements.