Year-to-date, gas production is running 9% higher than last year, while sales volumes are up 10% and sales revenue is 11% higher.

However, liquids production continued to fall. Origin's oil production in the Cooper and Surat/Denison basins fell by 9%. Success at two new appraisal wells meant the decline in its Perth Basin oil production was gentler - only 1%. Overall, the company's oil production was down by 3%.

Condensate and naptha production was also down, falling by 23%, and LPG production fell by 19%.

However, higher prices offset the fall in production, and sales revenue for the March quarter was $118 million, up 1% on the December quarter and up 5% on the previous corresponding period.

The BassGas project completed a 19-day shutdown in late February/early March to resolve a production constraint due to plant amine and dehydration systems issues and to improve liquefied petroleum gas extraction performance.

“At the end of the month, sales gas production had been tested to close to design rates and LPG extraction achieved design levels,” Origin said.

“New optimum operating conditions are being developed and the full outcome of the rectification program will be assessed during April-May 2007.

“Production during the month of April has been purposefully constrained and further work is being undertaken to optimise stable gas production on an ongoing basis.”

Meanwhile, Origin’s Kupe gas project in New Zealand remains on schedule for first gas in the first half of 2009.

At Origin’s Otway gas project in Victoria, offshore activities are complete and the onshore plant is mechanically complete, with pre-commissioning activities underway.

“Gas will be introduced into the plant in early June and sales will follow once commissioning is complete,” Origin said.