Beach poised for growth

03 December 2007 | 05:51 Code : 16095 Geoscience events
Beach Petroleum is poised for rapid production and reserves growth over....

  Beach Petroleum is poised for rapid production and reserves growth over the next three to five years, according to Managing Director, Reg Nelson.Production levels by Beach Petroleum in the financial year 2006-07 reached nearly 10 million barrels of oil equivalent (mmboe), helping the company generate gross revenue of $554.7m and net profit of more than $103m, up by 225 percent. At year-end, Mr Nelson said Beach’s reserves stood at 90 mmboe, approximately 62 percent of which was contracted gas and the remainder oil or liquids. But Mr Nelson said behind the reserves figure a resource base almost double the level of reserves, is awaiting development. The very large coal seam gas resource at Tipton West in Queensland, combined with the gas and condensate in the Basker/Manta/Gummy field in Bass Strait, stand to yield a further 170 mmboe. “Our ability to build reserves even at rates of production exceeding 10 mmboe per annum is very reasonably assured,” Mr Nelson said. “Just by concentrating on developing existing projects, Beach can realistically build from its present reserves base of 90 mmboe by new pilot projects at Tipton West, annual additions of three to five million barrels from the various Cooper basin activities, and committing to develop the BMG gas condensate resource,” he said. “Without making acquisitions or new discoveries outside these projects, we can reasonably expect to continue producing at these levels – or better – while building the reserves base by 10 to 25 percent. “But, of course, our aim is to make large new discoveries that will deliver multiples of net asset backing,” Mr Nelson said. At present, three main projects are producing 10 million barrels of oil equivalent a year for Beach. “We view this as a base level that can reasonably be maintained over the next three to five years – if we were to do little else,” Mr Nelson said. “But we believe that we can make this revenue create more wealth through developing existing projects and through what we have proven as a central capability – making new discoveries.”

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