Cooper Energy has posted an 84.3 per cent slump in bottom line annual profit to $1.3 million because of accounting treatments associated with the Petroleum Resource Rent Tax.
The company's underlying profit was $12.7 million down from $14 million the previous year because of deferred production and lower oil prices.
Revenue was off 10.4 per cent to $53.4 million.
Cooper said it held cash and investments of $68.1 million at the end of the period and was debt free.
Managing director David Maxwell said the company's strong operational performance and materially improved resource position (up 15 per cent to 2.16mmboe) had set a good foundation for growth from 2014.
Cooper said it expected 2014 full-year production of 0.54-0.58mmboe, an increase of 10-18 per cent on last financial year.
"Exploration and development expenditure is expected to more than double to $50 million with the testing of Hammamet West-3 offshore Tunisia, the drilling of at least one deep unconventional well in the Otway Basin and drilling in Indonesia all being factors in the increase," the company said.
"Five exploration wells are planned for the company's core acreage in the western flank of the Cooper Basin, where success rates remain high."Cooper shares were off two cents, or 4.44 per cent, to 43 cents at 11am.