-OSH-One to watch over the next 6 months Bargin Blue chip of the Large Oilers IMHO-SP- 3.62
-huge middle east exploration ongoing any major success should test 4.50 high
-forward P/E-16
-4c divie ex 5 March 07-Yield- 2.5%
-Makes ORG look expensive





RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006
20 February 2007


OIL SEARCH ANNOUNCES A RECORD NET PROFIT AFTER
TAX OF US$412.0 MILLION


HIGHLIGHTS
• Oil Search’s Net Profit after Tax (NAPT) for the year December 2006 was
US$412.0 million, including a net profit of US$258.4 million relating to the
sale of licence interests to AGL.
• The core Net Profit After Tax, excluding significant items, was US$207.5
million, up 4% on the 2005 result, a record for the Company in its 77 year
history.
•Based on the core Net Profit After Tax, earnings per share rose 3% to US
18.5 cents per share, whilst cashflow per share was 11% higher at US 35.6
cents per share.
• The result was achieved despite lower production, following the sale of
producing assets to AGL. 2006 oil and gas production was 10.2 million
barrels of oil equivalent (mmboe) compared to 12.2 mmboe in 2005, with
approximately 2.5 mmboe sold to AGL. Gross daily production from the PNG
oil assets rose by 5% in 2006 versus 2005, the third successive year
production has increased from these mature fields, demonstrating further
production potential and close field management.
• The Company generated total operating revenue of US$664.5 million, based
on oil sales of 9.2 million barrels (10.8 million barrels in 2005). The impact
of lower production was largely offset by a higher average oil price of
US$67.22 per barrel (up 16% on 2005).
• At the end of December 2006, the Company had cash reserves of US$477.9
million, compared to US$212.2 million at the beginning of the year. The
substantial improvement in the Company’s balance sheet reflected strong
cash flows from operations, combined with a US$379 million payment from
AGL for assets sold in early 2006. Following receipt of the AGL sale proceeds,
Oil Search paid down outstanding debt and has since remained debt free.
• The Board has approved the payment of a US four cents final dividend for the
2006 financial year. Together with the interim dividend of US four cents per
share, paid to shareholders in October 2006, the total dividend for the year is