Page 8 - OGA-Sept-2015
P. 8
THIS MONTH
OIL & GAS AUSTRALIA
Strong quarterly production results for AWE
AWE reported production increased 28 per Running pipe in hole at Irwin 1. Image courtesy Perth basin,” he said.
cent in the June quarter compared to the AWE. “Subject to joint venture and regulatory
March quarter, with improved performance
at Tui following the tie-in of the Pateke 4H was $14 million. approvals, we are targeting early production
well and production at BassGas resuming. “AWE’s operations have continued to from an initial phase of development of the
Waitsia field by mid-2016.”
Production for the financial year to 30 June perform well with promising results from the
was down 9% on the previous financial year, In late-July, AWE announced after
but AWE said this is in line with the upper consultation with joint venture partner Titan
range of the company’s guidance of 4.6 to 5.1 Energy, it will not proceed with Phase 2 of the
million barrels of oil equivalent (mmboe). Drover 1 exploration program and will not
hydraulically fracture stimulate the well.
A significant second lifting at Tui of over
600,000 barrels in June following the tie-in Located in permit 455 in the Perth
of the Pateke 4H well resulted in total sales basin, Drover 1 exploration well will be
revenue for the quarter at $81 Million, up 97% decommissioned and rehabilitated back to its
compared with the March quarter. pre-exiting state.
Sales for the full financial year were down AWE said the joint venture had applied to
13% at $284 million, largely due to the average renew exploration permit 455 and is awaiting
realised price of oil and condensate for the regulatory approval.
financial year at $78.77 per barrel, compared to
the previous financial year where the average There was an 11% decrease in development
realised price was $109 per barrel. expenditure for the quarter with AWE
reporting expenditure of $68 million,
AWE managing director Bruce Clement said with major expenditure items including
the low oil price environment impacted sales development drilling at BassGas and continued
revenue, but it was partly offset by the weaker drilling at Sugarloaf.
AUD-USD exchange rate.
AWE had net debt of $123 million and
AWE’s results show exploration expenditure undrawn facilities of $230 million as at 30 June
up 34% on the previous quarter, reflecting 2015. l
increased drilling activity in the Perth basin.
said with the completion of a period of
Exploration expenditure for the June quarter significant development, Origin’s cash costs
would be further reduced in line with future
Origin books loss on impairments business priorities,” he said.
ORIGIN Energy has recorded a statutory assets following recent revisions in proved and “Origin has in initiated a company-wide
loss of $658 million for the 2014-2015 probable (2P) reserves, announced at the end project which is expected to deliver costs
financial year after recorded a non-cash of July. savings of $200 million from the 2017 financial
impairment charge of $705 million. year.”
The company wrote down its Cooper basin
Origin recorded an underlying profit of $682 assets by $180 million, its Bass basin assets by Origin said it expected 2015-2016 would
million for the year, down $31 million or four $122 million, its Otway basin assets by $35 be a transitional year for the company, with
per cent on the previous year, while underlying million, and its New Zealand onshore assets by revenues and expenses from APLNG exports
earnings before interest, tax, depreciation and $53 million after the Contact Energy sale. not recognised until performance tests for
amortisation was up by $10 million to $2.15 Train 1 are satisfied under the Bechtel EPC
billion, driven by its Energy Markets division. Origin had earlier announced it had contract – expected in the second half of that
written down its Cooper basin 2P reserves financial year.
Company chairman Gordon Cairns said by 32 petajoules (PJ) to 240 PJ on the back of
in an announcement that market conditions revisions to field development plans made by The company expects increased production
remained challenging, despite Energy Markets the company’s joint venture partners – Santos from its Yolla 5 and Yolla 6 development wells
success, with the group having combined and Beach Energy. at the BassGas project will offset decreased
its exploration and production and LNG production from the Otway and Kupe projects.
businesses into a single group known as The 2P reserves of its Bass basin assets
Integrated Gas. decreased by 39 PJ to 90 PJ on the back of Meanwhile Origin’s planned sale of its share
results from the Yolla 5 and Yolla 6 wells. of gas production from the ATP 620 and ATP
“In our Integrated Gas business, we are 648 fields would generate significantly less in
mindful that the significant fall in oil price, At the same time the 2P reserves of the revenue than the company had expected.
if sustained at current levels, will result in Otway basin fell by 12 PJ to 313 PJ following
lower growth in cash flow and earnings than the downward revision of 27 PJ in the nearby Origin expects that its remaining cash
previously expected,” he said. Geographe field, due to a lower than expected contribution to APLNG would be around $1.8
reservoir performance and production of 33 PJ. billion, up $550 million due to lower oil prices
This had led to the company’s decision to and the delay in the expected startup of Train
offload its 53.1% stake in New Zealand focused The addition of 49 PJ from the new 1 from the first quarter of 2015-2016 to the
Contact Energy, he said, while reviewing the Speculant discovery failed to offset the dip. second quarter. l
carrying value of other assets.
Origin said there was no impairment related
Of these impairments booked, $390 million to Australia Pacific LNG (APLNG), and that
were incurred on Origin’s upstream oil and gas the economics of Origin’s investment in the
project were robust.
Company managing director Grant King
6 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
OIL & GAS AUSTRALIA
Strong quarterly production results for AWE
AWE reported production increased 28 per Running pipe in hole at Irwin 1. Image courtesy Perth basin,” he said.
cent in the June quarter compared to the AWE. “Subject to joint venture and regulatory
March quarter, with improved performance
at Tui following the tie-in of the Pateke 4H was $14 million. approvals, we are targeting early production
well and production at BassGas resuming. “AWE’s operations have continued to from an initial phase of development of the
Waitsia field by mid-2016.”
Production for the financial year to 30 June perform well with promising results from the
was down 9% on the previous financial year, In late-July, AWE announced after
but AWE said this is in line with the upper consultation with joint venture partner Titan
range of the company’s guidance of 4.6 to 5.1 Energy, it will not proceed with Phase 2 of the
million barrels of oil equivalent (mmboe). Drover 1 exploration program and will not
hydraulically fracture stimulate the well.
A significant second lifting at Tui of over
600,000 barrels in June following the tie-in Located in permit 455 in the Perth
of the Pateke 4H well resulted in total sales basin, Drover 1 exploration well will be
revenue for the quarter at $81 Million, up 97% decommissioned and rehabilitated back to its
compared with the March quarter. pre-exiting state.
Sales for the full financial year were down AWE said the joint venture had applied to
13% at $284 million, largely due to the average renew exploration permit 455 and is awaiting
realised price of oil and condensate for the regulatory approval.
financial year at $78.77 per barrel, compared to
the previous financial year where the average There was an 11% decrease in development
realised price was $109 per barrel. expenditure for the quarter with AWE
reporting expenditure of $68 million,
AWE managing director Bruce Clement said with major expenditure items including
the low oil price environment impacted sales development drilling at BassGas and continued
revenue, but it was partly offset by the weaker drilling at Sugarloaf.
AUD-USD exchange rate.
AWE had net debt of $123 million and
AWE’s results show exploration expenditure undrawn facilities of $230 million as at 30 June
up 34% on the previous quarter, reflecting 2015. l
increased drilling activity in the Perth basin.
said with the completion of a period of
Exploration expenditure for the June quarter significant development, Origin’s cash costs
would be further reduced in line with future
Origin books loss on impairments business priorities,” he said.
ORIGIN Energy has recorded a statutory assets following recent revisions in proved and “Origin has in initiated a company-wide
loss of $658 million for the 2014-2015 probable (2P) reserves, announced at the end project which is expected to deliver costs
financial year after recorded a non-cash of July. savings of $200 million from the 2017 financial
impairment charge of $705 million. year.”
The company wrote down its Cooper basin
Origin recorded an underlying profit of $682 assets by $180 million, its Bass basin assets by Origin said it expected 2015-2016 would
million for the year, down $31 million or four $122 million, its Otway basin assets by $35 be a transitional year for the company, with
per cent on the previous year, while underlying million, and its New Zealand onshore assets by revenues and expenses from APLNG exports
earnings before interest, tax, depreciation and $53 million after the Contact Energy sale. not recognised until performance tests for
amortisation was up by $10 million to $2.15 Train 1 are satisfied under the Bechtel EPC
billion, driven by its Energy Markets division. Origin had earlier announced it had contract – expected in the second half of that
written down its Cooper basin 2P reserves financial year.
Company chairman Gordon Cairns said by 32 petajoules (PJ) to 240 PJ on the back of
in an announcement that market conditions revisions to field development plans made by The company expects increased production
remained challenging, despite Energy Markets the company’s joint venture partners – Santos from its Yolla 5 and Yolla 6 development wells
success, with the group having combined and Beach Energy. at the BassGas project will offset decreased
its exploration and production and LNG production from the Otway and Kupe projects.
businesses into a single group known as The 2P reserves of its Bass basin assets
Integrated Gas. decreased by 39 PJ to 90 PJ on the back of Meanwhile Origin’s planned sale of its share
results from the Yolla 5 and Yolla 6 wells. of gas production from the ATP 620 and ATP
“In our Integrated Gas business, we are 648 fields would generate significantly less in
mindful that the significant fall in oil price, At the same time the 2P reserves of the revenue than the company had expected.
if sustained at current levels, will result in Otway basin fell by 12 PJ to 313 PJ following
lower growth in cash flow and earnings than the downward revision of 27 PJ in the nearby Origin expects that its remaining cash
previously expected,” he said. Geographe field, due to a lower than expected contribution to APLNG would be around $1.8
reservoir performance and production of 33 PJ. billion, up $550 million due to lower oil prices
This had led to the company’s decision to and the delay in the expected startup of Train
offload its 53.1% stake in New Zealand focused The addition of 49 PJ from the new 1 from the first quarter of 2015-2016 to the
Contact Energy, he said, while reviewing the Speculant discovery failed to offset the dip. second quarter. l
carrying value of other assets.
Origin said there was no impairment related
Of these impairments booked, $390 million to Australia Pacific LNG (APLNG), and that
were incurred on Origin’s upstream oil and gas the economics of Origin’s investment in the
project were robust.
Company managing director Grant King
6 ENERGY PUBLICATIONS CELEBRATING 34 YEARS OF PUBLISHING IN AUSTRALIA
