Beach Energy Releases 2016 Guidance on Production Volumes and Capital Expenditure

- July 29th, 2015

Beach Energy Ltd. (ASX:BPT) provided its full year 2016 guidance in relation to production volumes and capital expenditure, noting that the guidance excludes weather related events, other unforeseen operational delays, exploration successes and corporate activity.

Beach Energy Ltd. (ASX:BPT) provided its full year 2016 guidance in relation to production volumes and capital expenditure, noting that the guidance excludes weather related events, other unforeseen operational delays, exploration successes and corporate activity.
As quoted in the press release:

The recent industry‐wide focus on preserving cash reserves and liquidity has seen reduced drilling activity across the Cooper Basin and lower expectations for near‐term production profiles.   Accordingly, the FY16 production guidance range of 7.8 to 8.6 MMboe reflects the impact of natural field decline and curtailed drilling activity.  Consideration has also been given to timing of new wells and facilities coming online. Despite lower production, gas sales volumes in FY16 are expected to be higher than FY15 levels as a result of likely drawdown from storage.
The FY16 capital expenditure program has been prepared under the assumption of a continuing lower oil price environment, with a focus on preserving cash reserves and maintaining liquidity.   Accordingly, a major reduction in capital expenditure is budgeted, with lower priority projects deferred.  The FY16 capital expenditure guidance range of $240 to $270 million is summarised below

Click here to read the full Beach Energy Ltd. (ASX:BPT) press release.
 

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