Drillsearch Energy Limited announced Wednesday that it has increased its guidance for production in the year ending June 30 (FY2014) to 3.0 million to 3.3 million barrels of oil equivalent (MMboe), from previously stated guidance of 2.3 MMboe to 2.5 MMboe.
Production at the higher end of the stated guidance would be tripled the 1.1 MMboe produced in the previous financial year.
This record performance is being driven by the continuing better-than-anticipated performance of the PEL 91 permit in the Western Flank Oil Fairway of the Cooper Basin, and in particular the Bauer field, as well as by an increased share of production from the Tintaburra block in the Eastern Margin following the transaction announced in mid-2013 with Santos Limited.
The significant additional revenue being generated will be used to strengthen the company’s balance sheet, with funds also reinvested in an active exploration and development program across the portfolio, with around 20 wells to be drilled in the second half of FY2014 under the current work schedule.
This program includes numerous high return prospects and discoveries that are expected to help maintain current production within our oil business, as well as support the ongoing commercialization of existing discoveries within our wet gas business, and high impact exploration of our unconventional acreage, where an initial drilling campaign is underway.
Managing Director Brad Lingo said: “We continue to deliver strong growth in production and cash flow driven largely by our oil business where PEL 91 continues to outperform.
“The Bauer field has been a prolific performer since it started up in 2012 and with a number of new fields still to be tied-in in PEL 91 we are confident that we can sustain production from the block well into the future.”
“The revenue generated by our oil business continues to strengthen our cash position, as well as to underpin our broader exploration and development programs, as we pursue our strategy of increasing reserves, production and cash flow.”
For additional detail on Drillsearch’s production in the three months ended Dec. 31, 2013, please refer to the Quarterly Report released through the ASX today.
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