Interra Resources says the group generated a net profit after tax of US$1.82 million for the fourth quarter of 2009 (4Q FY2009), compared to a net loss after tax of US$0.34 million in 4Q 2008.

Revenue increased by 5% to US$3.64 million from US$3.47 million due to higher weighted average oil prices although shareable production was lower than the preceeding quarter.

The weighted average oil price transacted during 4Q was US$77.86 per barrel whereas during 3Q it was US$70.42 per barrel. Shareable production decreased by 5% to 64,372 barrels (700 bopd) from 67,479 barrels (733 bopd).

In 4Q, the group’s cost of production decreased by 15% (US$0.34 million) compared to previous quarter 3Q. The decrease was due to lower production expenses (mainly lower equipment rental and fuel charges) at Tanjung Miring Timur (TMT) oilfield in South Sumatra, Indonesia, by US$0.34 million as compared to Q3 2009.

During 4Q, four payments were received in respect of Myanmar trade receivables. Due to consistent payment from Myanma Oil and Gas Enterprise (MOGE), the company has reversed the impairment of exploration, evaluation and developments costs and provision of doubtful debts of US$3 million. The group received a total of 13 monthly payments in 2009 and two payments in 2010 from MOGE.

Further to the cessation of drilling of exploration well (MS-1) in Thailand, the group made a provision to write off the dry hole of US$1.57 million (share of 50% cost). In addition, the group is likely to relinquish Block L3 in Thailand in April 2010, hence a provision of total exploration costs of US$0.47 million relating this block was provided for during the quarter.