Beach told the stock exchange that the Croft-1 and Naylor-1 wells (Beach has a 10 per cent interest in each well), will be brought into production this month. The additional gas volumes follows Beach's first gas into Melbourne in March from the onshore McIntee-1 well near Port Campbell.

Beach Petroleum said that the McIntee-1 output is its first gas revenue in more than 20 years and has already added about 25 terrajoules in gas sales to the company's bottom line in the first month of supply.

The well was the first to be brought into production following the company's joint venture participation in five successful exploration wells in the region in the past 16 months, Beach said.

"Our total share of production from the PEP 154 wells is expected to be about 180 terrajoules during the current June quarter," said Beach Petroleum's chief executive officer, Mr Reg Nelson.

"Significantly, the expansion in gas sales coincides with an improvement in our oil profile as the production performance from our expanded Bodalla South and Kenmore oil fields interests in southwest Queensland has exceeded expectations."

The 253,000 bbls production figure was ahead of forecasts for the six months, said Nelson.