While production of conventional gas from the Cooper/Eromanga Basin and Perth Basin continued declining, coalbed methane production increased significantly, allowing overall gas production to increase from the previous quarter.

Total revenue from natural gas and ethane was $56 million, up 14% on the previous quarter.

CBM still forms just a small of Origin’s overall gas production (3.6 petajoules out of a total 15.9 petajoules) but it is growing rapidly, increasing by 20% over the previous quarter.

With Cooper Basin fields declining faster than anticipated, Origin is expected to continue fast-tracking development of its CBM assets.

However, when Origin's long-awaited Bass Gas project finally comes onstream, the company's production of conventional natural gas should risse significantly.

Origin’s Cooper/Eromanga and Perth Basin oil production also declined, and with no other areas recording increased oil production, the company’s overall output fell by 300,000 barrels. Even so, oil revenue rose due to higher prices.

Origin's quarterly sales from all divisions rose to $102 million from $97 million in the March quarter. Annual sales were up 17 per cent to $389 million. But although the gas and power retailer sold 16.9 petajoules of natural gas in the latest quarter, it produced only 15.8PJ, and was forced to buy gas from outside sources to meet contractual commitments.