Takeover target (according to rival Santos) Oil Search saw a 21.5% jump in June quarter revenues despite a production dip in the three months.
Total revenue jumped $US100 million year on year to $US366.2 million for the quarter, with the average price for oil and condensate rising from $US23.05 in June 2021 to $US71.55 in June 2021.
Year to date oil production is running ahead of 2020 despite the dip in output in the June quarter. Oil Search says it is on track to meet full year production and capital expenditure guidance.
Liquified natural gas (LNG) production dropped from 6.1 million barrels of oil equivalent (boe) to 5.8 million boe and oil production in Papua New Guinea decreased slightly from 735,000 boe to 725,000 boe. However, that was up from the previous quarter’s production of 693,000 boe.
“Operated production from our Moran and Agogo fields continues to perform strongly, and operated gas production was able to offset some reduced production from the Hides Gas Conditioning Plant during upstream maintenance activities,″ acting CEO Peter Fredricson said in the ASX statement.
He took on the role last week after his predecessor departed amid news the company has rejected an approach from rival Santos.
The big imponderable operationally is its Alaskan project, called Pikka Phase 1, where Oil Search is progressing work towards a development decision.
“It is in everyone’s interest – Oil Search, shareholders, JV partners – that we commit to FID on this high-quality asset only when appropriate funding and ownership levels (across upstream and infrastructure) are in place,” Mr Fredricson said in the statement.
The project looks like it would be one asset Santos would sell if it got control of Oil Search.
Oil Search repaid $US191.2 million debt owed by PNG LNG and $US100 million to a syndicated loan.
It had $US1.2 billion of total liquidity ($US504 million cash and $US697 million in undrawn credit facilities.
