In a report for the June quarter, the company attributed the record results to strong gas and liquids production from the BassGas project, and good contributions from the Cliff Head oil and Casino gas projects.

“The start-up production problems encountered during the previous quarter were largely mitigated during the June quarter, contributing to the record production result,” AWE said.

“The expected contribution from the Tui Area Development [which produced first oil last night] will see further strong increases in production and revenue levels in the next quarter and beyond.”

AWE said it also achieved record quarterly production in the three months to June 30, reflecting the solid improvement of its cornerstone production assets.

“Record production levels at BassGas and near record levels at both Casino and Cliff Head contributed to the strong output levels,” it said.

Gas production for the quarter rose 18% to 4560 terajoules, with 4468 tonnes of associated liquefied petroleum gas and 71,473 barrels of condensate.

AWE said Casino gas output was above the original contracted levels, while oil from Cliff Head improved to an average of 8500 barrels of oil per day. BassGas output reached stabilised rates above contract levels during the quarter.

Looking ahead, AWE plans to inject $A62.5 million on a drilling program targeting at least eight “high calibre” exploration targets.

This exploration activity will concentrate in New Zealand’s Taranaki Basin, drilling Hector-1, Taranui-1, West Cape-1 and possibly Kopuwai-1.

It will be complemented by the Bulu venture in Indonesia, where two exploration wells are planned, and early next year in southeast Australia’s Otway Basin.