Beach increases production target

Beach CEO Matt Kay.

Beach CEO Matt Kay.

Beach Energy has increased its FY18 pro forma production guidance to 25.5–27.6 MMboe following a stellar quarter.

Strong operating performance also underpins Beach’s decision to increase standalone FY18 production guidance to 10.6–11.0 MMboe, up from the previous guidance of 10.0–10.6 MMboe.

Beach’s production for the December 2017 quarter was up 3 per cent to 2.6 MMboe, including record operated gas production in December.

Revenue also increased by $30 million up to $208 million.

“It has been an active and successful quarter for Beach, headlined by outstanding operating and safety performance in the Cooper Basin, announcement of various growth initiatives, an increase in full year production guidance and strong earnings and cash generation from Beach and Lattice assests,” said Beach CEO Matt Kay.

“During the quarter, all conditions in relation to the acquisition of Lattice were satisfied.

“Strong performance and cash generation by Lattice has seen out expected net gearing level on financial close at 31 Janaury 2018 reduce to less than 33 per cent (previous estimate of 35 per cent at 31 March 2018).

“For the half year to 31 December 2017, Lattice generated free cash of approximately $155 million.”

Beach also announced progress on growth initiatives beyond its core Cooper Basin operations, which include potential farm-in to the high impact Ironbark exploration prospect in the Carnarvon Basin, offshore Western Australia, bolt-on acquisitions in the Otway and Bass basins, and plans for a second onshore Otway Basin exploration well.

The sale of Lattice Energy to Beach Energy is due to be completed today.

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