AWE said its debt levels rose to A$98.2 million during the year as a result of expenditure on the BassGas and the Casino gas projects.
The BassGas project development (AWE 30% interest) had suffered from delays during the year as a result of the discovery of several defects in the facilities, even though the Yolla development drilling was successfully completed.
Final project development and commissioning were now scheduled for the last quarter of this year with full production by the end of 2005.
The Casino gas project (AWE 25%) was 57% complete and on schedule for first gas production in first quarter 2006. Development drilling was recently completed, with excellent results.
The Cliff Head oil project (AWE 27.5%) was 36% complete and on schedule for first oil in first quarter 2006, with development drilling planned for late this year.
Meanwhile in New Zealand exploration permit PEP 38460, FEED activities for the offshore Taranaki Tui Area project (AWE 20%) were nearly complete, with FID scheduled for next October.
Total oil and gas production fell 36%, due to natural decline and the sale of producing assets in the previous financial year, to about 400,000 barrels of oil equivalent (boe). The lower production contributed to a 28% drop in sales revenue to approximately A$5.2 million.
During the 2005 financial year, AWE recorded a success rate of 75% with its Australasian drilling programme, with discoveries at Pateke (Tui Area), Trefoil and Martha (both Otway Basin). In addition, three development wells were successfully drilled and production tested in preparation for full field developments at BassGas and Casino.
And, subsequent to the end of the financial year, a new gas discovery was confirmed with the drilling of the Henry-1 well in VIC/P44 (AWE 25%).
Extensive seismic programmes were acquired in the Perth and Taranaki Basins to support future drilling operations and AWE currently anticipated participating in five more exploration wells during the 2006 financial year: Magnolia-1, Timor Sea, (AWE 10%), to be drilled in October; Cliff Head, Perth Basin, (27.5%), last quarter 2005; Frankland-1, Perth Basin, (27.5%), first quarter 2006; Red Hill-1, Perth Basin (25%), first quarter 2006; and Cutter-1, offshore Canterbury Basin (AWE stake likely to be 25-50%), mid-2006.
