Oil Search Lifts Production Guidance

PNG’s Oil Search said it has updated its production guidance for the 2014 full year following the commencement of LNG production from Train 1 in April and Train 2 in May, both ahead of
schedule.

Forecast cash operating costs on a barrel of oil equivalent basis have also been adjusted, as follows:

Peter Botten, Oil Search’s Managing Director said: “The commencement of production and sales from the PNG LNG Project has progressed well and I am pleased to report that another major milestone was reached yesterday, with the arrival of the first LNG cargo to Tokyo Electric Power Company Inc. in Japan. Oil Search now expects 2014 production to be in the range of 17 – 20 million barrels of oil equivalent (mmboe) compared to the previous 14.5 – 17.5 mmboe guidance range.

“Reflecting the largely fixed cost base of the Project, the increase in production has resulted in a downward revision to our forecast per barrel cash operating costs, from US$21 – 26/boe to US$18 – 22 /boe. We would like to congratulate the operator again for the safe and efficient execution of the start-up and ramp-up phase of the Project.”