Australian AWE's June Quarter Output Drops 18%

Australian AWE’s gas production for the June quarter was 0.6mn barrels of oil equivalent, 18% lower than the March quarter due to the sale of the Tui oil project and scheduled maintenance, it said July 28.

Total production for the year that ended June 2017 was 2.8mn boe, down 20% on year.

Sales revenue for the June quarter $16.8mn, down 49% quarter-on-quarter. For the full year that ended June 2017, sales revenue was $103mn, down 18%.

The average blended gas price for the quarter was $4.40/GJ. Following the sale of Tui in the March quarter, there was no oil inventory, AWE said.

Development expenditure for the June quarter increased as expected to $13mn, up 306% compared to the previous quarter, split between Waitsia Pre-FEED, the Waitsia-3 appraisal well and BassGas MLE compression hook-up and commissioning costs.

Exploration expenditure continued at reduced levels and totalled $0.9mn for the quarter. Total investment expenditure for fiscal 2017 was $43.7mn, well below the guidance range of $50mn - $60mn. The lower level of investment was primarily due to timing of activity, such as Waitsia-4 appraisal drilling and BassGas MLE compression hook-up and commissioning costs, extending into fiscal 2018.

Shardul Sharma