Beach Energy posts lower revenue, oil and gas volumes

Kerry Stokes-backed Beach Energy’s oil production fell in the first quarter of the new financial year, hitting sales volumes and revenue as the company shoulders the fallout from the troubled Western Flank basin decline.

The Adelaide-based firm, produced 5.7 million barrels of oil equivalent (Mmboe), down 4 per cent on the prior quarter due lower output at the Western Flank output and BassGas assets, and planned and unplanned downtime within the Perth and Taranaki Basins.

Sales volumes tumbled 11 per cent to 6.98 Mmboe on the prior corresponding period, dragging down sales revenue 8 per cent to $388 million.

The $2.81 billion producer told investors in its quarterly update this was partially offset by higher oil and gas prices, buoyed by improving global product demand.

The company pointed to an active quarter, completing drilling Geographe 5 development well, making two discoveries at Rosebay and Lowry South from three exploration wells in Western Flank gas acreage, and a 100 per cent success rate from 16 oil and gas development wells in Cooper Basin Joint Venture acreage.

The Kupe inlet compression project delivered first gas at 77 TJ per day in mid-October.

“While production is slightly down for the quarter, we are in a phase where our focus is on executing our major growth gas projects,” said Beach’s managing director, Matt Kay.

“The Offshore Otway development drilling campaign now moves to the Thylacine targets, following successful results at Geographe 4 and 5.

“This is Beach’s largest ever drilling campaign and will be an important source of gas for the East Coast market,” he said

The results come a month after Beach signed a five-year deal to supply LNG to BP Singapore from its Waitsia onshore gas project in Western Australia’s mid-west, turning the Adelaide oil and gas producer into the nation’s latest LNG exporter.

BP Singapore has agreed to buy all 3.75 million tonnes of Beach’s
expected LNG volumes from the Waitsia Gas Project Stage 2, a joint venture with Japanese trading house, Mitsui.

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