Oz Beach Sees Stronger Output, Revenue in 4Q

Australian oil and gas company Beach Energy reported stronger production and revenue in the April-June quarter (4Q) which saw its output hit the high end of its fiscal 2017-2018 (July-June) guidance, the company said July 26.

“The June quarter was one of heightened activity and success across the board, and rounded out what has been a transformational year for Beach,” the company’s CEO Matt Kay said.

“We were able to deliver a 10% increase in production to 7.23mn barrels of oil equivalent. In addition, we enjoyed a 7% lift in overall realised product prices leading to our quarterly sales revenue reaching A$471mn [$351.3mn], up 20% from the prior quarter,” he said.

The 10% lift in production was from 3Q, while it compared to 2.50mn boe seen a year earlier. That brought the fiscal year production in at 18.8mn boe, which is at the upper end of the company’s 18.1-19.1mn boe guidance range.

The production lift was primarily due to increased output from its Cooper Basin joint venture, Otway Basin and Bass Basin, which offset lower Western Flank and New Zealand volumes, the company said.

Beach completed an acquisition of Lattice Energy from Origin at January 31 for a purchase price of A$1,585mn. The Lattice Energy assets include a 67% interest in the Otway Gas Project, all of the Halladale, Speculant and Black Watch gas fields, and a 42.5% stake in the Bass Gas Project.

“Lattice assets operated safely and with high reliability in the quarter, underpinning a 10% increase in Beach production,” Beach said.

Beach’s sales revenue for the fiscal year was A$1,251mn.

The company saw a realized oil price of A$103.2/bbl in 4Q, up from A$69.5/bbl a year earlier and from A$92.8/bbl in 3Q. Its realized sales gas/ethane price was A$6.6/GJ in 4Q, up from A$6.2/GJ year on year and level with 3Q, it said.