Record oil production in difficult conditions has allowed Victoria Petroleum (ASX:VPE) to record a $2.6 million annual profit in FY10, a $11.2 million turnaround from the $8.6 million loss a year before.
Revenue increased 14% to $13.2 million with oil production up 15% to 142,579 barrels for the period, a strong result considering oil production was suspended at the Mirage and Ventura oil fields in the Cooper Basin from February 2010.
Ian Davies, managing director, said "Booking our maiden profit and achieving record production in the face of such bleak circumstances in 2009-2010 demonstrates that Victoria Petroleum is a solid investment with real upside."
"Oil production is expected to resume in the Cooper Basin in early 2011, delivering a strong and expanding revenue stream to the business that will underpin further expansion in our Cooper Basin oil business and an escalation of our coal seam gas activities in Queensland's Surat Basin."
Denis Patten, chairman, added changes in the company's management team, base of operations and geographic focus were expected to deliver improved results in coming years.
"The Board is confident that the injection of fresh leadership into the Company and the relocation of its head office to Brisbane to focus on its valuable east coast assets will facilitate the rapid growth and realisation of inherent value that shareholders expect the Company to deliver."
The market supported the results, pushing the share price up almost 4% in intra-day trading.