Australia's Origin Energy Limited (Origin) advised Wednesday that following its review of the carrying value of all upstream assets, the Company expects to recognize an additional non cash post-tax impairment charge of approximately $244.7 million (AUD 337 million) in its 2015 full year results to be released Aug. 20.
The impairment of Origin’s upstream oil and gas assets reflects recent reserves revisions, as reported in Origin’s Annual Reserves Report, revised development plans and lower oil prices. The impairment charge for upstream assets of $244.7 million (AUD 337 million) is detailed below.
Note: Impairment analysis based on Brent oil price estimates consistent with FY16 forward prices stepping up to $80/barrel (real 2015) from the 2020 financial year.
The impairment charge outlined above is in addition to the $38.5 million (AUD 53 million) impairment charge of New Zealand onshore assets announced in the 2015 half year results.
There is no impairment related to Australia Pacific LNG, the economics of Origin’s investment in Australia Pacific LNG remain robust.
Impairment charges are subject to finalization of Origin’s full year accounts.
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