Beach to cap record year under the oceanBy NHADA...

Beach to cap record year under the ocean
By NHADA GOODFELLOW
30jul04
ADELAIDE's Beach Petroleum wants to diversify by increasing its offshore oil exploration, after achieving record production and revenue in 2003-04.

The oil and gas producer will later this year participate in drilling off northwestern Australia with its first offshore Australian oil well in nearly three years.

"We've got the financial depth now to get more involved and that's the next platform for substantial company growth," managing director Reg Nelson said yesterday. "We're looking for big growth acquisition opportunities."

They could include acquiring oil-producing or exploration areas.

"We're looking to drill and produce in these offshore areas, preferably in proven areas where we can get oil to market very quickly," Mr Nelson said.









Beach had record 2003-04 revenue of $38.5 million - up 8.4 per cent.

Total production for the year to June 30 was up 7 per cent to 973,000 barrels of oil equivalent.

Mr Nelson said new hedging rates guaranteed Beach $54.95 a barrel for half of its 2004-05 oil production - up about 20 per cent on 2003-04's average $46.50.

With the new hedging rate, current record oil prices and Beach's expectation to at least meet 2003-04 production levels, 2004-05 is shaping up strongly.

Mr Nelson said 2004-05 was expected to result in "similar production" levels to 2003-04, unless a new discovery was made or bad weather hampered production.

The 2003-04 result was helped by new oil finds in South Australia and Queensland.