Beach sets output target

Australia’s Beach Petroleum said today it expects to produce at least 10 million barrels of oil equivalent in the current financial year.

Beach managing director Reg Nelson said the company's three main producing assets could continue to deliver production of around 10 million boe a year and that development and exploration work should see this rise.

Beach's proven and probable reserves currently stand at 90 million boe and Nelson said the gas resources at Tipton West and the Basker Manta Gummy joint venture have the potential to boost this by another 170 million boe.

Nelson said the Cooper basin oil programme should deliver 3 million to 5 million new barrels of reserves a year over the next three to five years.

Santos, Beach's joint venture partner in the Cooper programme, has announced it plans to scale back its spend on the exploration project in 2008 but Nelson said Beach remains firmly committed to the program.

"We are strong believers in the merits of pursuing this program aggressively. We see no reason to falter," he told shareholders at the company's annual general meeting in Adelaide.