Beach Energy FY production jumps 20%

Shares slip as oil and gas company hits top end of guidance range, flags lower FY15 output.

Beach Energy's (BPT) full-year production has come in at the high end of its guidance range but the oil and gas company expects a slightly lower output next year.

Investors were disappointed, sending Beach shares 3.69% lower to $1.695 at 10.30am (AEST), against a benchmark index fall of 0.08%. 

In the 12 months to June 30, the oil and gas company produced 9.6 million barrels of oil equivalent (mmboe), a 20% increase on the previous corresponding period.

The group said it expects total oil and gas production of between 8.6 mmboe and 9.4 mmboe in the year ahead, slightly below this financial year's guidance range of between 9.2 mmboe and 9.6 mmboe.

Beach said this reflected new oil facilities beginning to produce on the Western Flank, as well as the level of natural decline in the Bauer oil field and the outcomes of continued exploration, appraisal and development activities within the broader portfolio.

Capital expenditure for the year was $507 million, broadly in line with the $500m expected.

The group expects total capital expenditure of between $450m to $500m in fiscal 2015. Total expenditure in the year ahead is seen in a range between $115m and $130m.

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