This was due to better than expected performance from the field, which produced a record 44,800 barrels of oil per day for the third quarter ended March 31, 2008.

AWE added it will release a widely expected reserves review, which is likely to result in another upgrade, to be released this quarter.

Total production for the nine months to March 2008 was 7.4MMbbl of oil equivalent, up substantially on the previous corresponding period.

This was despite a 4% drop in gas production in the third quarter due to scheduled maintenance work at the Origin Energy-operated BassGas development in Victoria that was extended due to issues with the heat exchangers at the Lang Lang gas plant.

Production from the development averaged 33 terajoules per day, down from 56TJ in the previous quarter.

Elsewhere in Victoria, gross production from Casino was above contracted levels at 116TJ per day.

The Roc Oil-operated Cliff Head field in Western Australia (AWE 27.5% interest) produced 8035bpd during the quarter, down 15% from the previous quarter.

Revenue was up 16% from the previous quarter to $258 million due to the sale of some floating oil inventory.

"AWE is expecting to continue to benefit from the very strong cash flow we have generated in the financial year to date, driven principally by the performance from the Tui fields," managing director Bruce Wood said.

"AWE's other production assets are also performing up to expectations."

He said AWE's merger with Arc Energy would give shareholders a larger interest in some existing production assets and give the company additional exploration exposure.