Beach Energy has reported quarterly production and revenue gains, while offering a vague update on progress at the Waitsia stage two project in the Perth Basin.
Beach Energy has reported quarterly production and revenue gains, while offering a vague update on progress at the Waitsia stage two project in the Perth Basin.
Beach revealed a 12 per cent increase in production and 27 per cent revenue increase against the previous quarter, with 5 million barrels of oil produced and $450 million in revenue generated over the period.
The production increase was attributed to a 51 per cent uptick in output from the company’s Otway Basin assets in Victoria, which was also cited as a contributor alongside higher spot prices to the revenue improvement.
Beach connected its Thylacine North development wells in the basin during the quarter, allowing it to increase its supply to the east coast gas market.
Despite the quarterly increase, both production and revenue were 10.7 per cent lower compared to the corresponding quarter in FY22.
The company, which is 30 per cent owned by Kerry Stokes’ Seven Group, also provided an update on the construction of the Waitsia gas plant north of Perth but stopped short of revising its delivery timeline.
A joint venture between Beach and Mitsui & Co, schedule and cost estimates for the stage two development at Waitsia were withdrawn in May as a result of mounting cost pressures.
The withdrawal came months after contractor Webuild took on the job following its takeover of Perth engineer Clough.
“Significantly, the Waitsia stage two project is progressing, and while there have been some challenges resulting from the now resolved financial issues with construction contractor Clough, there continues to be skilled trades getting the plant ready for first gas,” chief executive Morne Engelbrecht said.
No indication was given as to when first production was expected.
However, Mr Engelbrecht cited first LNG sales from Waitsia and Perth Basin exploration among a list of the company’s growth catalysts.
Exploration in the Perth Basin has delivered mixed results for Beach, which abandoned its Trigg 1 gas well in June. The company said its Trigg Northwest 1 well was currently drilling.
Beach will provide FY24 guidance on August 14.
Its share price was up more than 5 per cent at 1pm today.
