Beach Petroleum says first-half sales rose 16% on the back of higher world prices, despite a dip in output in the six months to December.
Beach said sales climbed to $249.2 million in the December half ($214.4 million in the same period of 2006), while production slipped 2.4% to 4.5 million barrels of oil equivalent.
Second-quarter sales jumped to $129.8 million as world oil prices climbed over $US90 a barrel.
Beach Managing Director, Reg Nelson said in the statement that "The December quarter was a very good one for the company but with full production now restored in Bass Strait we are looking forward to an even stronger performance for the rest of the financial year.
"Despite the recent sharemarket volatility the outlook for oil prices remains strong. Beach's highly successful exploration and appraisal program, particularly in the Cooper basin region, provides a strong base from which the company can grow." "We are looking forward to continuing the high rates of drilling the company has planned and remain confident of continued success."
With Santos, Beach controls the huge but ageing Cooper Basin oil and gas province that extends from South Australia into Queensland.
Beach also owns 40% of the Anzon Australia-operated Basker-Manta oil project in the Bass Strait where output fell for most of the half because of a fault on the mooring system at the field.
Beach shares fell then rose, matching the markets moves yesterday. It finished at $1.385.
The company said its average realized price rose 50% from a year earlier to $55.52 a barrel of oil equivalent
The improvement in second half revenue "was generated by crude oil sales at an average price for the quarter of $110.77 per barrel (before any hedging adjustments) – and combined oil and gas sales which realised an average price of A$62.62 per barrel of oil equivalent, a rise of 27% over the previous quarter.
"Further contributions to the enhanced performance were a 32% lift in oil output for the December period compared to the September 2007 quarter due to improved production from Beach's Cooper Basin fields and re-commencement of full production from the Basker/Manta project in Bass Strait.
"A much stronger production performance from the project is expected in the current and subsequent quarters after full production of 11,000 barrels a day was restored in November."
"Highly successful exploration and appraisal programs in the December quarter are expected to add 2.4 million barrels to Beach's proven and probable (2P) reserves after excellent results from the Callawonga field appraisal program and the discovery of the Parsons field – both in the South Australian section of the Cooper Basin."
Beach Petroleum said it also recorded better than expected exploration results from the Cooper Oil Project and in the quarter acquired significant new tenements in Spain and Albania as it extended its international energy exploration portfolio.
"In the Cooper Basin, both the Callawonga-2 and Callawonga-3 wells (PEL 92, Beach 75%) began producing oil in October. Callawonga-4 successfully appraised the eastern flank of the field and was cased and completed for future oil production.
"At 31 December, cumulative production from the Callawonga field was 600,000 barrels. The Parsons oil field (PEL 92, Beach 75%) was discovered 10 km west of the Christies field and flowed oil at 3,362 barrels of oil per day. Production is expected to commence in the current March 2008 quarter.
"Installation of an oil field pipeline from the Callawonga field to the head of the Moomba-Tantanna pipeline was completed in December and the pipeline will be commissioned by mid March. The pipeline will be able to transport oil at up to 5,000 barrels of oil per day (bopd) from the Christies, Callawonga and Parsons oilfields."
