In its December quarterly report released today, Sydney-headquartered AWE said its oil and gas production for the three months was 2.65 million barrels of oil equivalent, up 24% on the previous quarter.
The company’s revenues were a record $223 million, up 159% on the previous quarter, largely due to the Tui Area oil pools off Taranaki, New Zealand, which produced a total of 6.34 million barrels of oil in just over five months since coming online.
AWE had cash reserves of $98 million, with debt fully repaid subsequent to the end of the quarter.
The company, which operates Tui, also said it hoped to increase production rates from the fields this year, giving expected total production for 2007-08 of 12 million barrels, up from a previously forecast 11MMbbl, due to better than anticipated field performance.
Water cut had averaged 32%, or about 22,800 barrels per day, which was less than anticipated, and AWE said that new gas lift facilities are being commissioned.
The Tui partners are AWE (operator, with 42.5% interest), Mitsui (35%), Pan Pacific Petroleum (10%), and New Zealand Oil and Gas (12.5%).
AWE is also a partner in three other major projects.
The Roc Oil-operated Cliff Head field in Western Australia (AWE 27.5% interest) produced a quarterly record of 870,000bbl.
In Victoria, the Origin Energy-operated BassGas development averaged 56 terajoules per day, enough to meet the gas sales contract, but liquids production was down due to a down-hole problem with one well.
Elsewhere in Victoria, gross production from Casino averaged 94TJ per day, in line with the sales contract, but down on the previous quarter following the end of a winter sales contract.
Total quarterly AWE oil production was 1.92MMbbl and gas production was 3.74 petajoules, which was about 20% lower than the previous quarter.
AWE – which holds more offshore Taranaki acreage than any other explorer – further said it was continuing with geological and geophysical assessments over most of the permits that it operates.
All of its Taranaki exploration wells drilled last year turned out to be non-commercial .
Elsewhere in New Zealand, AWE has taken over as operator from Tap Oil in offshore Canterbury licence PEP 38259, and is reviewing the results of the dry hole, Cutter-1, drilled in late 2006, which has implications for its plans to drill the nearby large Barque prospect.
AWE managing director Bruce Wood said the company had a very strong exploration and development program and a number of opportunities to continue its rapid growth.
“The Tui project has exceeded our expectations . . . gas developments in the Otway and Bass basins have continued to move forward, with the Henry project approved and the Bass Basin appraisal scheduled for 2009,” he said.
“In the next quarter, a three-well exploration and development program will start in the Otway . . . and the appraisal of our two discoveries in the Perth basin is due to start, with the Lilac and Frankland wells due to be drilled in the March quarter.”
