Adelaide, Jan 30, 2009 AEST (ABN Newswire) - Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) has continued its strong operating performance in the December quarter generating record oil production of 872,000 barrels driven by increased oil production from the Callawonga and Parsons oil fields in the Cooper basin Record oil and gas production of 2,522,000 barrels of oil equivalent (BOE) was also achieved along with a perfect record in Cooper basin exploration drilling with five successes from five wells drilled.
The most significant wells were the Brownlow-1 and Canunga-1 gas discoveries (Beach 50%). Three oil discoveries also made in the Queensland portion of the Cooper Basin. Beach Petroleum managing director, Reg Nelson, said, "This performance is very creditable when you consider the way the world has changed in recent months."
Mr Nelson added that, "Beach benefits from the fact that about 60% of the company's total production is in the form of gas which also contributes around 40% of the company's revenue - and while oil prices are quite volatile, gas prices are stable in long term contracts," he said.
Mr Nelson said that despite the higher production in the December quarter sales revenue was 17% lower at $151.1 million due to lower prices received for most products.
The average realised oil price in the December quarter, before hedging, was $A85 a barrel, down 39% from the September quarter.
But after accounting for oil hedging receipts of $A4.6 million during the quarter, Beach realised an average oil price of $A90/bbl.
For the 6 months to December 2008, Beach secured an average realised price of $A108 a barrel before hedging and $A110 a barrel after accounting for the effect of the maturing oil hedges settled during the period.
Contact
Reg Nelson
Beach Petroleum
08 8338 2833
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