Gulfsands looking beyond Syria – MoneyWeek

Thecompany,whichhassubstantialinterestsinthecrisis-torncountry,postedaleapinpost-taxprofitsin2011despitebeingforcedtodeclareforcemajeureonitssiteinSyriaasaresultofsanctionsimposedonSyriabytheEuropeanUnion。

DespitetheSyrianproblemshavingasignificanteffectonthegroupsfinancialstatements,netprofitrose23%to$55。

1mfrom$44。

7m,whilecashfromoperatingactivitiesrose34%to$94。

3mfrom$70。

2m。

Attheendoftheyearfreecashbalanceswere$124。

2mcomparedto$80。

6m。

However,groupworkinginterestproductionwasdownby17%to8,542barrelsofoilequivalentperday(boepd)comparedto10,308boepdin2010。

DuringtheperiodthefirmdrilledsixexplorationwellsonBlock26inSyria,whichresultedinthreediscoveries。

Groupprobableworkinginterestreserveswereupby34%to76。

3mbarrelsofoilequivalent(mmboe)comparedto56。

9mmboein2010。

Speakingoftheforcemajeuredeclaration(acommonclauseincontractsthatbasicallyfreesbothpartiesfromliabilityorobligationwhenanextraordinaryeventbeyondthecontrolofthepartiesoccurs)thecompanysChairman,AndrewWest,said:Wehavesincethatdateceasedtobeinvolvedinproductionorexplorationactivities,onekeyconsequenceofwhichisthatcurrentlyandfortheforeseeablefuturewecanexpecttoreceivenorevenuefromourprincipalasset。

WestalsoemphasisedthatthecompanyismaintainingwhatitcalledabalancedapproachtoabewilderinglycomplicatedandconstantlyevolvingsituationinordertopreserveitspositioninSyriaforwhensanctionsareeventuallylifted。

Thesharepricefell3。

08%to149。

25p。

NR

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