Beach Energy Reports 10% Decrease in First-Quarter Production

By Rhiannon Hoyle

Beach Energy, an Australian oil and gas company, announced a 10% decline in its first-quarter production of oil and natural gas. Despite higher oil prices, the decrease in production was attributed to lower gas-contract nominations.

Production Figures

During the three months ending in September, Beach Energy produced 4.5 million barrels of oil equivalent, compared to 5.0 million barrels in the previous quarter.

Operating Performance

Interim Chief Executive Bruce Clement highlighted the company's strong operating performance, with a reliability rate of over 99% at all operated gas plants. However, he expressed disappointment in the production decrease, primarily caused by minimum gas nominations from customer Origin Energy in the Otway Basin. Over 10 PJ of gas was made available but not taken.

Looking Ahead

Despite lower nominations in the current quarter, Clement expressed confidence in increasing the Otway Basin's contracted annual gas volumes in CY2024 and beyond. He mentioned that the Thylacine North wells were meeting expectations, positioning the company well for future growth.

Quarterly Sales Revenue

Beach Energy reported quarterly sales revenue of 397 million Australian dollars (US$252 million), a decrease from A$450 million in the previous quarter. However, it noted a positive 13% increase in realized oil prices compared to the previous quarter.