Beach Energy has reported that its first quarter production is down 4 per cent on the prior quarter to 5.7 MMboe, according to its latest quarterly report.
This drop was largely driven by natural Western Flank oil decline, which was partially offset by increased nominations at Otway and Cooper basin joint ventures.
Quarterly revenue fell 8 per cent to $388 million due to lower production volumes and a reduction in Cooper Basin liquids liftings.
Fallings were reported despite an 11 per cent increase in the realised oil price thanks to improving global product demand.
Beach also revealed its quarter capital expenditure was $195 million, up 13 per cent on the previous quarter, as development, plant and equipment spend increased with activities at the Cooper Basin JV and Western Flank.
Managing director Matt Kay acknowledged that the quarter’s production was lower than previous quarters, but remained positive for the future outlook of the company.
“While gas production is slightly down for the quarter, we are in a phase where our focus is on executing our major growth gas projects,” said Kay.
“The Offshore Otway development drilling campaign now moves to the Thylacine targets, following successful results at Geographe 4 and 5.”
The Offshore Otway development Beach’s largest ever drilling campaign and will be a significant gas source for the east coast market.
Other milestones for the quarter included signing a heads of agreement (HOA) with BP for the sale of LNG from the Waitsia Stage 2 Gas Project.
“We continue to progress the Moomba carbon capture and storage (CCS) project, having completed the front-end engineering design (FEED) phase,” Kay added.
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