Tulsa-Based Apco Argentina Reports Drop in Earnings

Apco Argentina Inc. has reported a 13.3-percent decrease in net income for the second quarter.

The Tulsa-based company’s earnings drop for the quarter included an increase of $1.7 million in exploration expense, which included $1.2 million for a dry hole charge, and $523,000 for Apco’s net share of the acquisition of 200 square kilometers of 3-D seismic information on the Bajada del Palo concession in Argentina.

Net income for the quarter totaled $7.2 million, or 24 cents per share, down from $8.3 million, or 28 cents per share, for the second quarter of 2007.

Revenue for the quarter totaled $17.2 million, up 16.2 percent from $14.8 million a year earlier.

The oil and gas exploration company with interests in seven oil and gas concessions and two exploration permits in Argentina reported net income for the first six months of 2008 of $13.6 million, or 46 cents per share, down from $16 million, or 54 cents per share, for the first six months of 2007.

Revenue for the first six months of 2008 totaled $32.4 million, up from $29 million a year earlier.

This year Apco and its partners have drilled 20 of the 35 wells planned for 2008 in the Entre Lomas concession in Argentina.

All of the wells drilled have either come on line as producers or will be completed and put into production during the third quarter.

In the Tierra del Fuego concessions, Apco and its partners have drilled five wells this year with a 16th well in progress.

Six of the wells have been put on production as oil producers, three are shut-in gas wells awaiting capacity expansion, one oil well is currently being completed, two wells have been logged with casing set and are awaiting completion, one well requires repairs and is under evaluation and two wells are non-productive.

Originally published by Journal Record Staff.

(c) 2008 Journal Record – Oklahoma City. Provided by ProQuest Information and Learning. All rights Reserved.