Lochard Energy Group reported its full year financial and operational report for the period ended 30 June 2011.

Financial highlights

Sale of drilling fluids business for up to A$45m generated a net profit of A$11.627 m Operational Highlights

Athena oilfield granted development approval and nearing completion A$14 million loan facility secured for the Athena development Awarded a 90% interest in nine new North Sea Offshore blocks Farm out of 40% interest in six Offshore blocks to PGS in return for 3D Seismic Commenting on the full year results Haydn Gardner, chief executive, said: "This has been a transformational year for the Company in both name and direction. The sale of the drilling fluids business allows the Company to concentrate on its oil and gas assets in the UK North Sea. Lochard's 100% owned subsidiary, Zeus Petroleum, was awarded a 90% interest in nine new offshore blocks in the 26th bidding round. This gives the Company various interests in eleven North Sea blocks. It has a well balanced portfolio of assets including the Athena development, discoveries on blocks 14/26b (Thunderball), 16/8c (Moby) and 3/10c, and a large exploration upside over the remaining blocks.

"The Athena development is nearing completion with first oil expected before the end of the calendar year. The expected production revenue from this field will provide funding for Lochard's share of planned exploration expenditure on the other blocks. In addition, the expected proceeds from the sale of the fluids business will support further exploration activities. Lochard will open a data room for the Thunderball discovery in September with a view to attracting farm in partners to drill the Thunderball and Moby discoveries in H2 2012."

Tags: Lochard Energy Group