Origin: APLNG 2P Reserves Up 11 Percent, Australia

Origin Energy Limited today released its 2012 Annual Reserves Report and the Quarterly Production Report for its Exploration and Production business for the period ended 30 June 2012.

At 30 June 2012, Origin’s Proved plus Probable (2P) reserves totalled 6,807 petajoules equivalent (PJe). This is a reduction of 234 PJe on the prior year, and includes the dilution of Origin’s share in Australia Pacific LNG from 50 per cent to 42.5 per cent during the period. If this dilution is excluded, 2P reserves increased nine per cent or 648 PJe compared with the prior year.

Australia Pacific LNG’s 2P reserves increased by 11 per cent or 1,336 PJe to 13,111 PJe net of production. Additionally, Origin’s share of 2P reserves increased by 61 PJe at Ironbark (ATP788P), 57 PJe in the Cooper Basin and by 14 PJe in offshore Taranaki (Kupe).

For the 12 months to 30 June 2012, Origin recorded production of 130 PJe, representing a four per cent reduction on the prior year. The dilution of Origin’s shareholding in Australia Pacific LNG from 50 per cent to 42.5 per cent and deferred production from BassGas as a result of its Mid Life Enhancement Project were the primary factors impacting production.

Despite marginally lower production and sales volumes, higher commodity prices resulted in a three per cent increase in sales revenues for the year ending 30 June 2012 to $856 million compared with $835 million in the prior year. Annual sales volumes reduced by seven per cent to 140 PJe, consistent with lower production levels.

Origin Chief Executive Officer Upstream, Mr Paul Zealand said, “On the back of record production and sales revenues last year, the Exploration and Production business has delivered another solid result in 2012.

“We continued to invest in proving up our resource base, which delivered a nine per cent annual increase in Origin’s 2P reserves before adjusting for Origin’s dilution in Australia Pacific LNG.

“While overall production for the year reduced by four per cent reflecting Origin’s reduced shareholding in Australia Pacific LNG, along with the shutdown at BassGas for the Mid Life Enhancement Project, production from the rest of Origin’s producing assets increased year on year.

“Higher commodity prices also pushed sales revenues higher to $856 million.

“In particular, Australia Pacific LNG delivered a strong increase in annual production, which was up 11 per cent to 108 PJe, though Origin’s share of production declined in line with its reduced shareholding,” Mr Zealand said.

On 4 July 2012, Australia Pacific LNG reached another major milestone, taking a final investment decision on the second train of its CSG to LNG project. Sinopec also completed its subscription for an additional 10 percent interest in Australia Pacific LNG, taking its share to 25 per cent, and reducing Origin and ConocoPhillips’ share to 37.5 per cent each.

“Performance for the June Quarter was strong, with production of 33 PJe representing an increase of seven per cent on the March Quarter 2012 and revenues of $223 million representing a 10 per cent increase,” Mr Zealand said.

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LNG World News Staff, July 31, 2012