Oil and gas explorer Petsec Energy Ltd
(ASX:PSA) plans to increase its current reserves over the next three years by exploring and developing its China oilfields.
In its annual report, the company says it also intends to acquire new gas fields during the 2010-2011 financial year.
Managing director Terry Fern says Petsec’s short-term objective is to grow from its current reserves-based value of about $US100 million to $US500 million or more.
Despite the global sharemarket uncertainty and falling energy prices, Mr Fern confirmed forecasts of natural gas prices ranging between $US4 and $US5 per thousand cubic feet in 2010 and 2011.
Mr Fern says the decline in natural gas prices from 2008 levels has resulted in a 60% reduction in drilling and development service costs.
The company has an interest in five oilfields in the Beibu Gulf in China, which it will begin developing this year, as well as operations in the US Gulf of Mexico, where it will start drilling also this year.
Petsec Energy posted a loss of $16.61 million for calendar 2009.
