Drillsearch posts record FY production

A new full-year production record has seen Drillsearch Energy more than triple its sales revenue in the period, as the oil and gas explorer sets its sights on further growth in the year ahead. 

In the year to June 30, Drillserach produced 3.38 million barrels of oil equivalent (mmboe), above the miner's guidance range of 3 mmboe and 3.3 mmboe and a record.

As a result, total sales revenue for the year came to $387 million, more than triple the $102.2m in the previous year.

The exploration company's bottom line was also assisted by a reining in of capital expenditure which, at $98.4m for the year, was well below March's guidance range of $115m to $130m.

Drillsearch managing director Brad Lingo said the group had set itself an ambitious, but achievable, target to significantly increase oil and gas production over five years based on its current portfolio of conventional assets.

Mr Lingo added the group's unconventional assets offered it the potential of significant returns in the longer term.

"In order to achieve that growth, we will continue to invest significantly in exploration and development activity across our portfolio," he said.

"As of June 30 we had $152.4m of cash on our balance sheet, and our work programs remain fully funded from internal sources through fiscal 2016."

Drillsearch said the key driver for financial performance was still oil production from the Western Flank and noted its balance sheet continued to be managed prudently.