Origin Energy: Australia Pacific LNG 45 Pct Complete

 Origin Energy released its 2013 Annual Reserves Report and the Quarterly Production Report for its Exploration and Production business for the period ended 30 June 2013. Origin has also provided an update on reserves and progress at the Australia Pacific LNG project.

Highlights

• Production 9% higher and revenues 12% higher than the previous Quarter
• Annual production 5% lower predominantly due to the dilution of Origin’s shareholding in APLNG and the suspension of operations at the Kincora gas plant in the Surat Basin partly offset by higher production from the Otway and Bass Basins
• Commencement of production from the Geographe 2 well in the Otway Basin in July
• APLNG drilled 87 Phase 1 development wells during the Quarter, bringing the total to 343
• The Upstream and Downstream components of the APLNG project are both 45% complete

Australia Pacific LNG’s total Proved plus Probable (2P) reserves increased by two per cent or 271 petajoules equivalent (PJe) to 13,382 PJe net of production, and 3P reserves increased to 16,155 PJe.

Origin Chief Development Officer, Mr David Baldwin said, “The Upstream and Downstream components of the Australia Pacific LNG project are now approximately 45 per cent complete, reflecting the strong progress achieved to date.”

Origin’s 2P reserves at 30 June 2013 totalled 6,201 PJe. This is a reduction of 607 PJe on the prior year, primarily due to the dilution of Origin’s share in Australia Pacific LNG from 42.5 per cent to 37.5 per cent during the period. If this dilution is excluded, 2P reserves increased by 49 PJe compared with the prior year, net of production. Origin’s 2P reserves at Ironbark (ATP788P) decreased by 13 PJe to 165 PJe and 3P reserves decreased 7 PJe to 881 PJe.

For the year to 30 June 2013, Origin recorded production of 123 PJe, representing a five per cent reduction on the prior year. The dilution of Origin’s shareholding in Australia Pacific LNG from 42.5 per cent to 37.5 per cent, the suspension of operations at Kincora gas plant and natural field decline in the Cooper Basin were the primary factors impacting production, partly offset by higher production from the Otway and Bass basins. Despite lower production and sales volumes, sales revenue of $849 million was broadly in line with the prior year, due to a higher average commodity price.

Performance for the June Quarter was strong, with production of 32 PJe representing an increase of nine per cent on the March Quarter 2013 and sales revenue of $223 million representing a 12 per cent increase.