Beach Petroleum Limited has announced record oil production from its Cooper-Eromanga Basins assets for the 2007-08 financial year and expects its assets in Australia’s flagship onshore oil province to deliver even higher output in 2008-09.
Beach reported that its record 2007-08 Cooper/Eromanga basin oil production achieved in the current financial year was partnered by an increase in the company’s oil reserves in the basin. Beach’s preliminary figures were announced for the current financial year, showing an 18% rise in Cooper/Eromanga oil production to a record 2.0 million barrels of oil (mmb) – up from 1.6 mmb in 2006-07.
Propelling the Company’s onshore oil output from for the new financial year commencing tomorrow will be the first full year’s production from the Parsons oil field (Beach 75%) to the west of Moomba.
The Parsons-1 well, which only commenced production this month, has averaged gross production of about 1,600 barrels of oil per day (bopd) with initial volumes trucked to Tantanna. Production will eventually be tied via flowline to Beach’s Callawonga pipeline, due to commence first deliveries from next month south to Port Bonython.
Despite the record onshore oil production, Beach’s 2007-08 success has enabled the Company to lift Cooper/Eromanga oil reserves by 27% to above 15 mmb, from 12 mmb at June 30, 2007.
The reserves growth was driven by Beach’s $110 million participation in an exploration and development campaign across the basin. Its participation for the year in 70 oil wells in the region delivered a success rate of 65%.
"Our preliminary assessment of current and future oil output from the Cooper/Eromanga basin points to still further significant growth in reserves and production," Beach Petroleum’s Managing Director, Reg Nelson, said. "Beach is upbeat about the province. We added 4.9 mmb during the year and at a highly competitive Finding and Development cost of A$22/bbl," continued Nelson.
"We participate in a wide range of projects in the Cooper/Eromanga, have a different risk/reward profile and cost structure than other operators, and are distinguished from other companies by our western flank program which includes the Callawonga/Parsons region.
"The Company continues to make higher impact discoveries in this sector from within the Namur and Hutton Sandstones. The latest full year performance reflects the fact our oil production and reserves for the region has economically grown for the past four years on a year-on-year basis and is expected to do so for at least another 2-3 years," said Nelson.
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