Beach Energy's sales revenue up 2.5% in October-December
Australian oil and gas producer Beach Energy’s sales revenue during the October-December quarter (Q2) came in at A$408mn ($288mn), up 2.5% year/year thanks to higher realised oil and gas prices, the company said on January 31.
Production during the quarter was 4.8mn boe, down from 5.2mn boe a year ago. Beach’s average realised oil price in Q2 was A$141.1/barrel, up from A$117.1/b in the same quarter last year. The average sales gas price was A$8.4/GJ versus A$7.6/GJ last year.
Compared with the July-September quarter, sales revenue was up 1% while production was down 8%. Beach said that the quarterly production was down as gas output was impacted by planned and unplanned plant downtime and lower customer nominations. Five Western Flank oil well connections were delayed to H2 due to weather and supply chain challenges, it added.
Meanwhile, Beach has slashed its Perth basin estimated gas reserves by 11% following the Waitsia Stage 2 drilling campaign. The company said that despite the downgrade its ability to supply 3.75mn metric tons of LNG volumes to BP and meet domestic gas commitment remains unchanged.
Waitsia is one of the largest onshore gas fields ever discovered in Australia. Japan's Mitsui and Beach took a final investment decision on the project in 2020.
“Beach is navigating a challenging period while we work hard to deliver our major growth projects in the Otway and Perth basins,” CEO Morne Engelbrecht said. “While we have announced a reduction to our Perth basin 2P reserves following the Waitsia development drilling campaign, we remain confident in the Perth basin as a major growth area including our ability to supply 3.75mn mt of LNG volumes to BP and meeting our domestic demand commitment.”