Beach Energy has revised its production guidance for the year after seeing better-than-expected oil output.
Beach Energy (ASX:BPT) has revised its production guidance for the 2019 fiscal year after seeing better-than-expected oil production during the first half of the period.
The company had originally laid out guidance of 25 to 27 million barrels of oil equivalent (MMboe) in late October 2018, and has now updated those numbers to 28 to 29 MMboe. The update comes after Beach produced 15.2 MMboe in the first half of the 2019 fiscal year.
Another factor in Beach’s production revision is the expected completion date for the sale of its Victorian Otway interests, which it is selling 40 percent of to OG Energy Holdings for AU$344 million.
Announced in early October, the original completion date had been docketed for December 31, 2018, but has since been moved to March 31, 2019.
According to the company, moving the sale completion date will contribute an estimated 0.7 to 0.9 MMboe to the revised production guidance range.
Capital expenditure was also updated — it previously sat in the range of $440 to $520 million; it now rests at $450 to $500 million.
The revisions to capital expenditure came as the company prepares to further develop “value-accretive” growth projects in the second half of the 2019 fiscal year.
These include the start of drilling at the onshore South Australian Otway Basin during the March 2019 quarter, and ordering long-lead items affiliated with drilling programs at Victorian Otway, with drilling docketed for the first half of the 2020 fiscal year.
Also upcoming are the company’s plans to add a drilling rig to the Western Flank area, expected to start in the June 2019 quarter, and the operation of four drilling rigs in the Cooper Basin joint venture.
Beach’s share price closed 5.57 percent higher on the ASX at the end of trading on Thursday (January 31), ending the day at AU$1.80.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.