22-Apr-2020: Quarterly report for the period ended 31 March 2020
Q3 FY20 production increases 8% to 6.9 MMboe, continued growth in Western Flank oil
- Western Flank oil production increased by a further 15% to 2.1 MMbbl, with gross operated Western Flank oil production averaging 22,400 BOPD through the quarter.
- Q3 FY20 sales revenue decreased by 7% relative to the prior quarter, due to the declining oil price through the end of the period, partly offset by higher realised gas prices.
Beach ends quarter in net cash position; Black Watch-1 well completed
- Beach had a net cash position of $80 million at 31st March 2020 with access to $530 million in liquidity.
- The Black Watch-1 well in the Victorian Otway Basin has been completed after intersecting the target Warre C reservoir in-line with pre-drill expectations. The well is expected to be tied into the Otway Gas Plant in the June 2020 quarter.
- As advised on 20 April 2020, subsequent to quarter end Beach has issued a termination notice to Diamond Offshore Inc in relation to the Ocean Onyx drill rig and is engaging in discussions to negotiate a new rig contract with Diamond; offshore drilling is now unlikely to commence until FY21.
- Subsequent to quarter end, the Haselgrove-4 well was successfully side tracked. The well is being completed as a production well and is expected to be tied into the nearby Katnook gas facility.
Review of FY21 work program underway, FY20 guidance maintained
- A review of proposed FY21 activities is underway, with Beach targeting a deferral of up to 30% of previously planned capital expenditure.
- FY20 guidance is unchanged, with underlying EBITDA expected at the lower end of the current range.
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