Hope in joint venture

The junior oil and gas company is looking east to help arrest its declining production and profits. Petsec Energy reported an 8 per cent decline in gas output from its Gulf of Mexico operations for the June quarter. Revenue for the period fell 15 per cent to $US14.6 million ($17.8 million) while earnings before interest, tax, depreciation, depletion, amortisation, and exploration expenses dropped 19 per cent to $US9.5 million. The decline in production was due to the cessation of production from one of its fields and the natural decline in other fields. All eyes are now on its joint venture exploration program in China with China National Offshore Oil Corporation. The project is said to hold oil reserves of 185 million to 262 million barrels and the first oil is expected in the fourth quarter of 2011. Meanwhile, investors will have to put up with falling profits.