Increased field service costs impact Apco results

US-based Apco Argentina, which has interests in seven oil and gas concessions and one exploration permit in the South American country, saw net profits in the fourth quarter fall 30.8% to US$4.43mn compared to 4Q07. The decrease was primarily due to higher costs and operating expenses that more than offset increased operating revenues, Apco said while commenting on full 2008 results. "Although the company increased oil production volumes year-to-year from successful drilling and benefited from improved oil sales price net backs in Argentina, we were significantly impacted throughout much of the year by continued increases in the cost of oil field services that have affected the entire industry," CEO Ralph Hill said. Operating revenue in the quarter rose 5.77% to US$18.3mn.