Revenue increased by 7% to $18.2 million on oil and gas production, which rose by 4.8% to 464,951 barrels of oil equivalent. The monthly average output for the period of around 3,205 barrels of oil equivalent per day was the highest ever achieved in the company's 40 year history.
Understandably, Beach Petroleum's MD, Reg Nelson, was a happy man. "This is a most pleasing performance in a period which has seen further outstanding progress achieved in the continued growth of this Company," said Nelson.
"As well as our exploration and development successes, and solid earnings growth, Beach has ended the latest December half-year well placed for further expansion, with cash of $36 million," he added.
These gains were credited to Beach's significant Christies-1 oil discovery in the Cooper Basin region and major extensions to the Kenmore fields where three new producing wells were brought on line.
"The new Kenmore wells in particular, have increased field contributions significantly. The extension to the field has added new reserves at low cost, and low recovery cost, and is the effective equivalent of a new field discovery in excess of one million barrels," said Nelson.
Nelson believes that further production and revenue benefits to flow in the current half from development programs commenced late last year, which include 3D seismic over the Christies field and optimisation studies for the Sellicks field (South Australia) and the Kenmore-Bodalla fields (Queensland).
"Pending no major disruption, these enhancements should deliver Beach's objective of full year 2003-04 production exceeding 1 million boe," said Nelson who added that Beach will continue with its aggressive exploration program with at least seven exploration wells and five development wells planned for drilling between March and October.
"We are on track for a full year profit at least in line with last year's record $7.95 million result. Oil and gas sales in the current half are expected to more closely reflect our record levels of production achieved towards the end of 2003," said Nelson.
