Oil and Gas News

Beach benefits from high oil and gas prices

Beach Energy

Profit at Beach Energy has jumped 66 per cent thanks to soaring oil and gas prices, despite the company’s half-year oil and gas production rates falling 15 per cent. 

In its half-yearly report, the company reported revenue rose 10 per cent to $797.4 million, with higher prices resulting in an additional $198 million in revenue. 

Higher gas and ethane prices increased revenue by $16.0 million with realised prices of $7.54 a gigajoule.

Higher sales from third-party product increased revenue by $10.8 million. 

The Adelaide-based company reported a net cash position of $73 million

Western Flank oil operations accounted for 17 per cent of Beach’s production, which reported a 48 per cent decrease on the first half of FY21 due to lower oil development activity. 

Western Flank gas operations accounted for 9 per cent of the company’s H1 FY22 production.   

During the second half of the financial year, Beach will remain focused on optimising its assets, commencing the Western Flank oil exploration campaign, and completing the Yolla Stage 2 wireline campaign. 

The company also intends to pursue other compatible growth opportunities, such as progressing approvals for connecting Enterprise 1 well to the Otway Gas Plant. 

There are three remaining offshore Otway wells to be drilled, and drilling at the Waitsia development is still to commence.

Acting chief executive Morné Engelbrecht said the first half results saw steady progress on Beach’s major growth projects in the Perth and Victorian Otway basins, as well as the Kupe gas plant returning to full capacity.

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