South-America focused Apco Oil and Gas International (Nasdaq: APAGF) reported net income in the third quarter that was relatively unchanged from the previous year, as it said higher operating revenues were offset by greater costs and higher income tax expenses.
For the third quarter, the company posted net income of $6.6 million, or $0.22 per share, compared with profits of $6.3 million, or $0.21 per share in the same period last year.
Total operating revenues jumped 14% to $21.7 million during the third quarter, helped by higher average sales prices, Apco said.
Total costs and operating expenses increased by 14% during the quarter, primarily from higher production and lifting costs and greater exploration expenses.
Because of these costs, the benefits of higher prices were substantially offset, the company said.
Apco incurred $5.7 more in exploration costs for the nine months ending September 30, 2010 than the year-earlier period. During 2010, significant seismic acquisition investments were made in Argentina and Colombia.
"As we conclude interpreting the seismic information acquired earlier this year, we're encouraged about our exploration drilling prospects for 2011," said chairman and CEO Ralph Hill.
Apco has interests in nine oil and gas concessions and two exploration permits in Argentina, and two exploration and production contracts in Colombia.
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