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Exploration costs dent Oil Search profit

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AAP

2013-02-26

Oil Search's full year profit has dropped by 13 per cent due its increased exploration activity.

The energy company has also forecast lower production and higher costs in calendar 2013.

Oil Search made a net profit of $US175.8 million ($A171.40 million) in the six months to December 31, down from $US202.5 million in the previous corresponding period.

"This was largely driven by higher exploration expense, of $US144 million ($A140.40 million) compared to $US60.6 million in 2011," managing director Peter Botten said in a statement on Tuesday.

"This reflects the company's increased level of exploration activity in 2012."