AWE downgrades FY production guidance
AWE Limited (AWE) downgraded its production guidance for FY10 to 6.2 million barrels of oil equivalent, citing a further extension of the BassGas maintenance shutdown and work-over project in addition to some production decline in the onshore Perth Basin. The company’s previous guidance was 6.5 million boe.
AWE made the announcement in its December quarterly report, which revealed a 22% drop in production compared to the previous month and a 31% reduction on a year earlier to 1.46 million boe.
The company said revenue of $81 million for the quarter, down 26% on the previous quarter and 42% below the prior corresponding period.
AWE said Bass Basin, New Zealand, East Java in Indonesia and Yemen would all be focal points for exploration over the next 6 to 12 months.
The company said its balance sheet remains strong with cash reserves of $296 million.
“When combined with the recent refinancing, this provides flexibility and certainty of funding, particularly if global financial markets deteriorate again,” AWE said.
”It will support any development activities resulting from success in AWE exploration campaign, as well as underpinning the pursuit of other growth opportunities.”
As at 1334 AEDT, AWE shares were down 13c to $3.63.
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