Sydney: home to Australia's Origin Energy
Origin bumps oil and gas output
Origin Energy said its second-quarter oil and gas production rose 2.2% from a year ago, thanks to higher output of coal seam gas and condensates.
However, the company’s total production of 23.3 petajoules equivalent (PJe) for the quarter ended 31 December was 2.5% lower than the previous quarter due to natural field decline at several of its fields, Sydney-based Origin said in a statement.
Production in the half year to 31 December was 47.2 pje, up 6% from a year ago.
Origin said revenue in the quarter was A$125.9 million ($112.4 million), bringing total revenues in the first half to A$255.5 million, up 9% from a year ago.
However, its exploration and development expenses for the first half also rose. Exploration costs in the first six months rose 12% from a year ago to A$189.3 million.
Shares in Origin were up 0.35% at A$8.65 by 0410 GMT on the Australian Stock Exchange, compared with a 0.5% decline in the broader S&P/ASC 200 index.
Origin said gas production has been unaffected by recent floods in central Queensland, but oil production in some fields in the Surat Basin has been temporarily shut-in.
"Provided there is no further significant rain, these facilities are expected to be accessible in early February," Origin said in a statement, Reuters reported.
The company also said production at the Otway gas project, operated by Woodside Petroleum, had resumed and exports were expected to recommence in early February.
Otway, off Australia’s Victoria state, first came onstream in mid-September but was shut down barely a week after due to technical issues including a leaking pipeline. It is expected to produce 950 billion cubic feet of gas over its lifetime.
Origin in October trimmed its profit growth forecast for the 2008 financial year to a range of 10-15%, compared with an earlier forecast of about 15%, citing delays to the Otway project.
Origin is Australia's only vertically-integrated energy company with oil and gas production assets accounting for about a quarter of its revenues, which have helped to offset tighter margins in its traditional retail energy business.