TN PETRÓLEO

Oklahoma-based oil company Apco Argentina (Nasdaq: APAGF) posted net income of US$31.3mn in 2007, down 21.9% from US$40.1mn in 2006.

Operating revenue increased 6.3% to US$61.6mn in 2007from US$57.9mn in 2006.

The fall in profit is due to higher operating costs and expenses and lower equity income from the company`s Argentine investments, Apco said in a statement.

Export taxes related to Apco`s interests in Tierra del Fuego added to the higher operating expenses that more than offset the company`s increased oil sales and higher natural gas prices.

"Although we were able to increase oil production volumes year-on -year, increases in oil price realizations in Argentina did not keep pace with those in the international market," Apco CEO Ralph Hill said in the statement.

"Despite these factors, the 2007 results represent our second highest ever," Hill added.

Oil and natural gas net sales volumes for 2007 totaled 2.5Mb and 6.7Bf3 (190Mm3) compared with 2.4Mb and 6.7Bf3 in 2006.

The company received an average of US$43.16/b for oil and US$1.50 per 1,000f3 (MCF) for natural gas compared to US$43.29/b and US$1.36/MCF in 2006.

Apco ended last year with US$47.1mn in cash, cash equivalents and short-term investments and no long-term debt, according to the statement.