Beach Energy recorded FY17 sales revenue of AU$152 million, in-line with the prior period, and achieved 9% more sales volume of 11.8 MMboe, it said.
The Adelaide-based company drilled 58 wells in FY17 at a success rate of 79% and completed an onshore five-well oil development and appraisal campaign at the Callawonga field, located in South Australia’s Cooper basin.
Designed to develop oil reserves in the McKinlay Member, all five wells are expected to come online in Q2 FY18. Four wells intersected oil columns high to prognosis, indicating extensions of field limits with 2P reserve additions expected.
“Record full-year production of 10.6 MMboe, completion of major infrastructure upgrades, successful drilling campaigns and close to $700 million of available liquidity demonstrate a strengthened platform for growth,” CEO Matt Kay said.
“To continue this momentum, Beach has commenced a multi-year capital program which seeks to extract maximum value from our core Cooper basin acreage. By fully appraising the undeveloped reserve and prospective resource potential of the basin, the program provides the foundation for sustained activity and production over coming years,” he added.
In FY18, Cooper plans to produce 10.0 – 10.6 MMboe and is targeting at least 10 MMboe of production in FY19 and FY20. Planned activity in FY18 comprises of completion and connection of more than 20 cased and suspended wells, production optimization projects, facility expansions and development drilling in the Cooper basin.
These activities are expected to offset natural field decline and sustain production levels in FY18. Cooper will drill 78 wells in FY18, including up to 44 exploration and appraisal wells to add reserves and guide development programs for future years. In addition, it plans to process recently acquired 3D seismic to identify exploration targets for FY19 and beyond.
According to Kay, capital expenditure of $220 – 260 million is expected in FY18, with two-thirds of discretionary spend targeting projects with internal rates of return greater than 60%. He said FY18 guidance is underpinned by existing producers and current well stock and does not rely on exploration drilling success.
“With an expanded exploration and appraisal drilling campaign and a full-year rig schedule in FY18, Beach also has [the] confidence to target at least 100% replacement of produced reserves through to year-end FY19,” he added.
Image: Map of Callawwonga oil field / Beach Energy
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