AWE's December quarter oil and gas production was 2.12 million BOE, down on the previous quarter. The inclusion of the Arc Energy assets for the first full quarter contributed to the results. However, an unscheduled production disruption at BassGas and scheduled maintenance at Tui and Casino saw lower output for the period. All facilities were operating at expected levels by the end of the quarter.

First half oil and gas production of 4.64 million BOE was only slightly behind the previous year's levels. For the 2008/2009 financial year, AWE's share of production is forecast to be 9.0 million BOE (previous quarter forecast 9.3 million BOE), generating sales revenues at current prices of approximately $600 million (previous quarter forecast $730 million at higher prices).

Tui oil production remained strong, with an average rate of 28,000 bopd for the quarter. AWE's share of net oil sales from the Tui fields was 0.97 million barrels and production of 1.03 million barrels. At the end of the quarter, AWE's share of project inventory was 189,000 barrels.

Group oil production was 1.42 million barrels during the quarter, down 11% following natural production decline and the scheduled maintenance at Tui.

Quarterly gas, condensate and LPG production was down substantially in the quarter as a result of the BassGas and Casino shutdowns.

Sales revenue of $140 million in the quarter was 44% lower than the previous quarter following a sharp reduction in the average realized oil prices and lower production levels.

AWE's share of exploration expenditure during the quarter was $17 million. AWE incurred $24 million development expenditure in the quarter principally on the development of the Henry gas field in the Otway basin. AWE ended the half year in a strong financial position, with no corporate debt and cash balances of $383 million.

Tags: Australia Worldwide Exploration (AWE)