AWE lowers production guidance
Australian Worldwide Exploration Limited (AWE) lowered its production guidance for FY10 from 7 million barrels of oil equivalent to 6.5 million BOE due to recent adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported revenue of $109 million for the September quarter, up 25% on the previous quarter.
AWE said the improved revenue was partly related to oil sales from inventory, within the natural cycle of oil sales from Tui and a slight improvement in the average oil price received.
The company reported a 4% fall in oil and gas production compared to the previous quarter to 1.86 million BOE.
AWE said production was marginally lower at the Tui and Cliff Head projects as a result of operational issues.
“Strong quarterly gas throughput was achieved at the BassGas, with a commensurate improvement in the level of condensate and LPG production,” the company said.
“Casino production was lower, marginally below the long term contracted rate. Oil production from the onshore Perth Basin was also lower, but gas volumes improved.”
Across the business, AWE said gas production improved marginally reaching 5.1 petajoules for the quarter, with the performance of BassGas underwriting the result.
AWE expects the weather issue that negatively impacted the Tui operation to subside as conditions improve in coming months.
The company said exploration expenditure is expected to increase over the remaining three quarters of the financial year as the offshore drilling campaign in the Bass and Taranaki Basins commences.
AWE said development expenditures would also increase as work recommences on the Henry gas project and the Yolla “Mid Life Enhancement” program in the later part of the financial year.
The company said it had a cash balance of $315 million at the end of the quarter.
As at 1037 AEDT, AWE shares were up 4c to $2.63.
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