Oz Beach Targets Production of 40mn Boe by FY23

Australian oil and gas company Beach Energy is planning to grow its production to 34-40 million barrels of oil equivalent and deliver more than A$2.3 billion ($1.66bn) free cash flow over the next five years, the company said September 27.

The announcement follows the company acquiring Lattice Energy from Origin Energy at January 31 for a purchase price of A$1.59bn and marks a transitional fiscal year (July 2017-June 2018) for the company, Beach said.

“We have delivered on our promises to perform as a low-cost operator, to deliver the highest standards of safety and sustainability, and to drive increased value for our shareholders,” Beach CEO Matt Kay said.

“As a result, we expect to be close to debt free by the end of FY20, a remarkable achievement considering our net gearing stood at 33% at the end of January this year,” he said.

“Supplying the east coast gas markets remains a strategy imperative for Beach. More than three quarters of our discretionary investment will be directed towards bringing new supply into the market over the next five years, where we already have a 15% market share,” he added.

In FY18, Beach produced 19mn boe and FY19 is forecast at 26-28mn boe, Beach said.

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.