Australian Beach Energy FY17 Output Up 9% on Year
Australian Beach Energy’s production during the 12-months to June 2017 was 10.6 million barrels of oil equivalent, up 9% year on year. Oil accounted for 54%, with gas and gas liquids accounting for 46%.
The increase in output, a record for the company, was driven by factors such as new discoveries, new wells being brought online, a range of production optimisation projects, and a full year of contribution from Drillsearch (merged since spring 2016), Beach said October 20.
Net profit for the year was A$162mn (US$127mn), up 350% year on year.
Lattice Energy acquisition “transformational”
CEO Matt Kay called the acquisition of Lattice Energy, “a truly transformational opportunity for Beach”. In September this year, Beach Energy bought Australian utility Origin Energy’s conventional upstream oil and gas business – Lattice Energy – for A$1.6bn.
According to Wood Mackenzie’s senior Australasian analyst Chris Meredith this acquisition will bump up Beach’s production by 160% to 46,000 boe/d. The company will become much more gas focused, with its share of total production rising from 45% to 66%.
“It will propel the company from a single-basin onshore producer, to a multi-basin, onshore and offshore producer with significant gas processing capabilities across Australia and New Zealand,” Kay said, adding that fiscal year 2018 – ending June 2018 – will be one of completing and integrating Lattice.
Shardul Sharma