Beach’s revenue of $28.7 million for the half was boosted by a record quarterly revenue of $14.4 million achieved in the three months to December 31, 2004.

Prices for hat period surged by about 31%, averaging $A60 a barrel compared to $A45.60 a barrel for the same period the previous year.

Total sales for the period rose 24% to 490,560 barrels of oil equivalent (boe) compared to 395,500 boe previously.

The company said production for the half was up slightly to 479,000 barrels boe from 464,951 boe reported in the previous corresponding period.

Managing director Reg Nelson said Beach expected oil production would receive further boosts over the March quarter, which would include full contribution from the company's Christies-2 and Christies-3 wells west of Moomba in the Cooper Basin.

Production would also benefit from the artificial lift on the Marpoono-1 well south of Moomba and the connection of the four recent successful development appraisal wells in the Kenmore field, according to Nelson.

Meanwhile Beach said it would boost its exploration program and participate in 16 wells over the next six months, including more offshore ventures.

Beach has 10% stake in the Santos-led WA-208-P joint venture which has just drilled the Hurricane-1 wildcat in Western Australia's offshore Eastern Dampier Sub-Basin that intersected a 76-metre gross gas column.

During the quarter, Beach Petroleum also expanded its exploration assets to include a25% interest in the offshore Basker, Manta and Gummy oil and gas discoveries in the Gippsland Basin fields through a farm-in agreement with Anzon Australia Limited, and has a direct (current 9.7%) stake in Anzon.

"We have achieved a good balance between existing production and an aggressive forward exploration program with medium to high risk exposure," Nelson said.

"This augurs well for our outlook at a time of sustained strength in world oil prices."

The bulk of Beach’s December quarter production was in Queensland's Eromanga Basin where 146,000 boe was produced over the period.

Another 82,000 boe was produced at its assets in the South Australian Cooper and Eromanga Basins with 1,000 boe coming from the Otway Basin in Victoria.

Oil production from Christies-3 in the Cooper Basin started in mid-October but was constrained by the availability of trucking resources. The Christies-2 well remained shut-in for most of the quarter due largely to the trucking shortage.

Full production from both wells is expected to start in late January.